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Which of the following statements is true about all U.S. government agency issues?

A. they are exempt from federal taxes
B. they are exempt from registration under the Securities Act of 1933
C. they are issued in bearer form only
D. they are general obligations of the federal government

User Dso
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1 Answer

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Final answer:

All U.S. government agency issues are exempt from registration under the Securities Act of 1933, but they are not necessarily exempt from federal taxes, issued in bearer form, nor are they general obligations of the federal government.

Step-by-step explanation:

The question asks which statement is true about all U.S. government agency issues. The correct answer is that they are exempt from registration under the Securities Act of 1933. Unlike private corporations, government agencies receive tax dollars and their issues are a part of the broader government financial activities.

An important note is that not all agency issues are general obligations of the federal government, and they certainly are not issued in bearer form only. Furthermore, some agency issues may be exempt from federal taxes, but this is not true for all of them.

The correct answer is B. they are exempt from registration under the Securities Act of 1933.

Government agencies are not exempt from federal taxes (option A). They do not issue securities, so they are not subject to registration under the Securities Act of 1933 (option B).

Government agency issues can be in bearer form, registered form, or book-entry form (option C). Lastly, government agency issues are not general obligations of the federal government, as they are backed by the agency itself (option D).

User Imperative
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