What Statement Is True of the Federal Housing Administration

question 139

Multiple Choice

What statement is true of the Federal Housing Administration?

• A) The FHA gave loans directly to home buyers.
• B) The FHA issued short-term money for renters.
• C) Under FHA guidance, expensive homes were built.
• D) The FHA insured long-term mortgages issued by private banks.
• E) The FHA focused on renting apartments rather than home purchases.

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Definitions:

Fixed Ratio

A financial metric that reflects the consistency of a company's financial performance by comparing various fixed costs to its total expenses.

Interest On Capital

The return on investment that is required or anticipated for the money or capital invested in a business or project.

Salary Allowances

Additional compensations over the base salary that may cover various specific needs or expenses.

Net Income

The amount of revenue that remains after subtracting all expenses, taxes, and costs from total sales; a key indicator of financial health.