Which of the following is NOT considered a government security?

Corporate bonds are not considered government securities because they are issued by private companies rather than the government. Government securities are specifically instruments issued by government entities to finance government spending. Treasury notes and Treasury bonds are both types of government debt securities issued by the U.S. Department of the Treasury, and they represent loans made by investors to the government. Mutual funds that are guaranteed by the government may include government securities within their investment portfolio, but they are still structured as a separate financial product.

In contrast, corporate bonds represent debt obligations of corporations. Investors purchasing corporate bonds are providing loans to these companies, which can involve higher risks compared to government securities. The distinction is crucial because government securities typically carry lower risk of default, reflecting the issuing government's ability to raise funds through taxation or other means. Understanding the different types of securities helps investors manage risk and make informed investment decisions.