Which item below is not true of a Ginnie Mae bond?
A)
Ginnie Mae purchases mortgages from banks.
B)
It usually has a lower yield than a Treasury bond.
C)
It is based on a pool of mortgages.
D)
It is issued by the GNMA.
B
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Sensitivity analysis on the economic order quantity (EOQ) formula can help the operations manager answer several questions on how to manage inventories. Which one of the following questions is NOT answered by EOQ sensitivity analysis?
A) How critical are errors in estimating demand (D), inventory holding cost (H), and setup cost (S)? B) What should happen to lot sizes if interest rates drop? C) What should happen to cycle inventory if the demand rate increases? D) What should happen to lot sizes if supply and lead-time uncertainty increase?
Why are liquid assets important in cash management?
What will be an ideal response?