Series 7 Exam Question 276: Answer and Explanation

Question: 276

Which of the following securities is/are directly backed by the U.S. government?

I. GNMA

II. FNMA

III. FHLMC

• A. I only
• B. I and II
• C. II and III
• D. I, II and III

Correct Answer: A

Explanation:

A. Out of all of the choices listed, the only one directly backed by the U.S. government is GNMA (a.k.a Ginnie Mae, or the Government National Mortgage Association).