Definition of Government Security

Government Security is a security which is an obligation of the United States Government and which is backed by the full faith and credit of the US Government, such as Treasury bills, notes, and bonds.

Applying "Government Security" to Securities Exams:

Government Securities are issued in a variety of forms by the US in an effort to manage the cash flow needs of the federal Government and to finance large national projects. Investors may purchase government securities to earn interest income and may select a government security for its safety of principal.

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