What is a mortgage? What were the important developments in the mortgage market during the years after 1970?
What will be an ideal response?
A mortgage is a loan a borrower takes to buy a house. Prior to 1970, mortgages were not considered securities — financial assets that are sold in secondary markets. After 1970 Congress helped to create a secondary market in mortgages in order to help the housing market. Congress created the Federal National Mortgage Association ("Fannie Mae") and the Federal Home Loan Mortgage Corporation ("Freddie Mac"). These institutions sell bonds to investors and use the proceeds to buy mortgages from banks and savings and loans. By the 1990s, these developments led to a large secondary market for mortgages.
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In the above figure, a surplus exists in the gasoline market when the price is
A) $1/gallon. B) $2/gallon. C) $4/gallon. D) below $2/gallon.
A federal budget deficit can simultaneously reduce inflation and unemployment
a. True b. False Indicate whether the statement is true or false