Fannie Mae and Freddie Mac both
A) sell bonds to investors and use the funds to purchase mortgages.
B) help regulate the banking system.
C) directly lend funds to people seeking mortgages.
D) reduce access to funds for mortgages by purchasing existing mortgages.
A
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When the economy is in a recession, it
a. needs firms and people to borrow but few take advantage of the banking systems'willingness to loan at low interest rates b. needs firms and people to borrow but few take advantage of the banking systems' willingness to loan because interest rates are typically high in recession c. does not need firms and people to borrow from the banking system because firms and people are already earning less revenue because of the recession d. needs people to save more so that banks will have greater deposits and could lend out more e. reflects the fact that banks are typically loaned out and cannot finance further investment, which is part of the recession's problem
Allocative efficiency refers to:
A. the use of the least-cost method of production. B. the production of the product mix most wanted by society. C. the full employment of all available resources. D. production at some point inside of the production possibilities curve.