SIE (Securities Industry Essentials) Practice Exam

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Which of the following agencies is backed by the full faith and credit of the federal government?

GNMA
FNMA
FHLMC
Sallie Mae

The correct answer is: GNMA

The answer is A GNMA (Government National Mortgage Association). This agency is backed by the full faith and credit of the federal government, which means that the government guarantees the payment of all securities issued by GNMA. The other options are not backed by the full faith and credit of the federal government. FNMA (Federal National Mortgage Association) is only partially backed, while FHLMC (Federal Home Loan Mortgage Corporation) and Sallie Mae (Student Loan Marketing Association) are not backed at all. Therefore, A is the correct answer.