What Was the Original Stated Purpose of Fannie Mae and Freddie

question 53

Multiple Choice

What was the original stated purpose of Fannie Mae and Freddie Mac?

• A) To allow the government to extend loans directly to low-income and minority households.
• B) To help provide liquidity in the secondary mortgage markets.
• C) To operate as non-profit entities that would provide competition for for-profit mortgage companies.
• D) To take on mortgages going into default in order to prevent them from going into foreclosure.

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Definitions:

Outliers

Data points that are significantly different from or inconsistent with the remainder of the dataset.

Scatterplot

A type of graph used in statistics to display values for typically two variables for a set of data, showing how much one variable is affected by another.

Blood Pressure

The pressure of circulating blood on the walls of blood vessels, often measured for health assessments.

Correlation

A statistical measure that describes the extent to which two variables change together, indicating the strength and direction of their relationship.