Fannie Mae and Freddie Mac are important in the mortgage industry because:
a. They regulate banks and make sure their underwriting standards meet strict standards.
b. They purchase mortgages, bundle them, insure them, and then sell mortgage-backed securities to investors.
c. Their mandate is to develop a secondary market in global mortgage markets.
d. They originate mortgages, purchase them, bundle them, insure them, and then sell mortgage-backed securities to investors.
e. None of the above.
.B
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If your disposable personal income increases from $30,000 to $40,000 and your savings increases from $2,000 to $4,000 . your marginal propensity to save (MPS) is:
a. 0.2. b. 0.4. c. 0.5. d. 0.8. e. 1.0.
During the American Revolution, the Pennsylvania legislature enacted price controls on essential commodities. The result of this legislation was
a. a large increase in the availability of those items, ending shortages. b. a severe shortage of those essential commodities. c. an increase in the price of those items, thus alleviating shortages. d. new efforts to increase production of those commodities. e. a minor inconvenience as persons adjusted to the new law.
A higher price level leads to
A. lower real wealth. B. higher level of debt. C. a higher consumption function. D. higher aggregate demand.
Japan's long run fiscal situation
A) is worse than the U.S. partly because of declining overall population B) is not as bad as the U.S. in terms of Debt to GDP ratio C) is worse than the U.S. in terms of current interest rates on long term government bonds D) is in bad condition because of the hangover effects of World War II