Which of the following was the result of Fannie Mae and Freddie Mac being both privately-owned and government-sponsored enterprises?

a. Their government sponsorship increased their cost of acquiring loanable funds.
b. They were unable to earn profits and pay dividends to their shareholders.
c. Congressional regulations exerted little or no impact on their business operations.
d. Their activities were more susceptible to political influence and favoritism.


D

Economics

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If the Federal Reserve unexpectedly decides to sell bonds, which of the following will most likely happen in the short run?

a. The demand for loanable funds will increase, which will exert upward pressure on the interest rate. b. The supply of loanable funds will decrease, which will exert upward pressure on the interest rate. c. The supply of loanable funds will increase, which will exert downward pressure on the interest rate. d. The natural rate of unemployment will increase.

Economics

A joining of two or more businesses that are involved in different stages of producing the same good or service:

a. vertical merger b. horizontal merger c. cooperative d. conglomerate

Economics

Refer to the graph above. If the price of the product increases from $5 to $6 because of a decrease in supply that is shown by curve S, total revenue would:

A. stay the same. B. decrease. C. increase by $100. D. increase by $300.

Economics

The unemployment rate is calculated by dividing the number of unemployed and looking for work by the sum of the number employed and the number unemployed and looking for work.

Answer the following statement true (T) or false (F)

Economics