Question

Match (by number) each capital market instrumentwith its description:

Answer 1

Answer:

1. These​ long-term bonds are issued by institutions such as Ginnie​ Mae, the Federal Farm Credit​ Bank, and the TVA. Many of these securities are guaranteed by the federal government. - Agency security

2. These​ long-term debt instruments are issued by the U.S. Treasury to finance the deficits of the federal government. - Government Security

3. These are loans to households or firms to purchase​ housing, land, or other real​ structures, where the structure or land itself serves as collateral for the loans - Mortgages

4. These are equity claims on the net income and assets of a corporation - Stocks

5. State and local bonds are​ long-term debt instruments issued by state and local governments to finance expenditures on​ schools, roads, and other large programs - Multiple Bond

6. These​ long-term bonds are issued by corporations with very strong credit ratings - Corporate bonds