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.
Question 2 - If the price of inputs rises and personal income taxes rise:
a. Price index rises, and real GDP falls.
b. Price index rises, and the change in real GDP is uncertain.
c. The change in price index is uncertain, and real GDP falls.
d. Price index falls, and real GDP rises.
e. Price index falls, and real GDP falls.
Question 3 - 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.
Question 4 - If the price of inputs rises and personal income taxes rise:
a. Price index rises, and real GDP rises.
b. Price index rises, and real GDP falls.
c. Price index rises, and the change in real GDP is uncertain.
d. Price index falls, and real GDP rises.
e. The change in price index is uncertain, and real GDP falls.
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