United States Government Securities

securities issued by the federal government are almost always considered suitable for banks. However, these securities are of various types, not all of which are available for bank investment . The major type of security excluded is encompassed by the term savings bonds, which are designed for the small individual investor. in addition, other government securities, such as those special issues designed for the government trust funds or for the federal Reserve, also cannot be acquired for bank portfolio. But most of the very large marketable federal debt is available for bank acquisition, even though particular maturities and types of government securities are particularly preferred by banks.