Which bonds are issued by agencies to support public programs like education, farming, and housing?

Which bonds are issued by agencies to support public programs like education, farming, and housing?

• A. Municipal Bonds
• B. Government Bonds
• C. Government Agency Bonds
• D. Junk Bonds

Answer: (C)

Bonds issued by government agencies are raised specifically to support public programs such as housing, farming, and education financing. These agencies raise capital by selling debt to investors, and the proceeds are used to fund programs that serve the public, often with some level of government backing. This distinguishes them from municipal bonds, which fund local projects; from government securities like Treasuries, which are direct obligations of the national government; and from junk bonds, which are high-yield bonds issued by private companies. Examples include bonds issued by entities like Fannie Mae or the Farm Credit System, which exist to support housing finance and agricultural lending.

Bonds issued by government agencies are raised specifically to support public programs such as housing, farming, and education financing. These agencies raise capital by selling debt to investors, and the proceeds are used to fund programs that serve the public, often with some level of government backing. This distinguishes them from municipal bonds, which fund local projects; from government securities like Treasuries, which are direct obligations of the national government; and from junk bonds, which are high-yield bonds issued by private companies. Examples include bonds issued by entities like Fannie Mae or the Farm Credit System, which exist to support housing finance and agricultural lending.