What characteristic is true of all U.S. government agency issues?

U.S. government agency issues often fall under the category of securities that are exempt from registration under the Securities Act of 1933. This exemption applies because these securities are considered to have a lower risk profile, primarily due to the backing they receive from federal agencies. While many investors seek these securities for their perceived safety and stability, the regulatory framework allows these securities to bypass the more rigorous registration process that other types of securities must undergo.

The notion that they are exempt from registration helps facilitate the issuance of these securities, ensuring that government agencies can efficiently raise funds for various projects. This characteristic is crucial for maintaining the flow of financing required for public projects and initiatives they support, as it streamlines the process while still providing a level of investor confidence due to the nature of the backing they receive from the government.