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The first objective of federal companies are to reduce the cost of funds and improve the provision of funds to targeted sectors of the financial system. The companies do that by selling debt instruments which are called firm securities in the direct credit markets provides or close to the government borrowing charge than lending those funds to economic members induethe sector they serve most of the funds offered by the federal companies aid agriculture and housing to the importance of those sectors to the nations effectively-being. It’s argued that these and different aim sectors within the economic system would not receive adequate credit score at reasonable . without direct intervention by the federal authoritiesvalue
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