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:

Antidepressants

Medications designed to alleviate symptoms of depression by adjusting the chemical balances in the brain.

Mood Disorders

A category of mental disorders involving persistent disturbances in a person's mood, affecting their emotional state.

Anxiety Disorders

A group of mental health disorders characterized by significant feelings of anxiety and fear, which may impact daily activities and overall quality of life.

Depressive Disorders

A group of conditions characterized by persistent feelings of sadness, hopelessness, and a lack of interest or pleasure in life.