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Business
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| Number of pages / Number of words: |
6 / 1557 |
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For example, in a deficit, the treasury will sell short and long-term securities. This can be seen in the example with federally sponsored credits, which are sold by the U.S. Treasury, such as those given by Fannie Mae with home loans. In times of need, Fannie Mae will sell home loans to other companies to create a profit for the U...
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Within this category are state and local securities. These securities are seen as interest payments issued by the state and local government and are exempt from federal income tax, such as principal residence property tax. Corporate securities “are debt instruments that have a fixed life and must be paid at maturity†(Block & Hirt, 2005, p...
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