Question

Which of the following statements are TRUE regarding new issues of U.S. Government agency securities?

I. The securities are sold through a selling group appointed by the Agency
II. The securities are sold through a selling group appointed by the Federal Reserve
III. The securities are sold at par
IV. The securities are sold at a par plus a mark-up

Answer 1

I). The securities are sold through a selling group appointed by the Agency.

III). The securities are sold at par.

Step-by-step explanation:

As per the question, the above-provided statements would be considered true regarding the new issues of United States government agency securities. They correctly describe the selling group consisting of a group of banks, brokers, and dealers assigned by the agency to sell the securities at par to the public. Therefore, options I and III are the only true statements while the other options assert an incorrect or unclear claim. Thus, the options I and III are the correct answers.