Fannie Mae and Freddie Mac are important in the mortgage industry because:
a. They regulate banks to make sure their underwriting standards meet strict standards.
b. Their mandate is to develop a secondary market in U.S. mortgages.
c. Their mandate is to develop a secondary market in global mortgage markets.
d. Their mandate is to develop a primary market in the U.S. mortgage market.
e. None of the above.
.B
You might also like to view...
The supply of product X is perfectly inelastic if the price of X rises by:
A. 5 percent and quantity supplied rises by 7 percent. B. 8 percent and quantity supplied rises by 8 percent. C. 10 percent and quantity supplied stays the same. D. 7 percent and quantity supplied rises by 5 percent.
Jim’s Limited Leather dumps its tanning chemicals into a creek that it claims to own. Jim’s only neighbor, Mr. Glover, claims he owns the creek, and the chemicals are killing his fish. Why would it be impractical to apply the Coase theorem to find a workable solution in this case?
a. There are too many transactors. b. There is no externality. c. Property rights are uncertain. d. Leather is a private good.