Full faith and credit refer to the comprehensive commitment of a government entity to use its taxing and borrowing power and other revenue sources to ensure the payment of interest and principal on its issued bonds.
A Repurchase Agreement, commonly referred to as a Repo or RP, is a common financial instrument involving an agreement between a seller and a buyer, typically involving U.S. government securities, where the seller agrees to repurchase the securities at a specified price and time.
Treasuries are negotiable debt obligations of the U.S. government, secured by its full faith and credit, and issued at various schedules and maturities. The income from U.S. Treasury securities is exempt from state and local taxes but subject to federal taxes.
