Question

Which of the following states are FALSE? ( )

I. “The foreign bond market sector of the Japanese bond market consists of non-Japanese entities that are issued outside of Japan."

II."A country's semi-government bonds carry the full faith and credit of the central government."

III. "In the United States, all federal agency bonds carry the full faith and credit of the U.S. government."

A) I, II& III

B) I& III only

C) II &III only

Answer 1

Option A) I, II& III

All the given statements are false for the reasons given below:

I. The remote security advertise division of the Japanese security showcase comprises of non-Japanese elements that issue bonds in Japan.

II. The assurance of semi-government bonds fluctuates from nation to nation. Some may convey the complete faith and credit of the focal government while others may have a intended or accidental assurance.

III. Inside the U.S., federally related organization securities (with certain limitations) give the total confidence and credit of the U.S. government. Government-supported entities (with certain limitations) have an intended guarantee.

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