Which of the Following Factors Occurred in the Early 2000s

question 103

Multiple Choice

Which of the following factors occurred in the early 2000s and created concerns about the ability of Fannie Mae and Freddie Mac to manage their portfolios of assets?

• A)Fannie Mae miscalculated the value of its mortgages that created a restatement of its stockholder equity.
• B)Both agencies overcharged lenders for services they provided.
• C)Fannie Mae operated for some time with a sharp increase in interest rate risk on its balance sheet.
• D)All of the options.
• E)Both agencies overcharged lenders for services they provided, and Fannie Mae operated for some time with a sharp increase in interest rate risk on its balance sheet.

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Definitions:

Culture-Group Biases

Refers to the preconceived opinions or attitudes held by members of one cultural group towards another, often leading to misunderstanding or conflict.

Minority Cultures

Cultural groups that exist within a larger, dominant culture but maintain distinct languages, traditions, or practices.

Multicultural Organizations

Organizations characterized by a diverse and inclusive workforce consisting of individuals from various cultural, ethnic, and racial backgrounds, which fosters innovation and global understanding.

Structural Integration

A concept in organizational management that refers to aligning the various elements of an organization (systems, processes, departments, and people) to work together efficiently towards achieving the organization's goals.