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Interestingly, It’s argued that these and different purpose sectors within the economic system would not receive adequate credit score at reasonable value without direct intervention by the federal authorities. 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 company securities in the direct credit markets provides or end to the government borrowing charge than lending those funds to economic members in the sector they serve most of the funds offered by the federal companies support agriculture and housing due to the importance of those sectors to the nations effectively-being.
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