Government-Sponsored Enterprises Like Fannie Mae and Freddie Mac Usually Borrow

question 45

Multiple Choice

Government-sponsored enterprises like Fannie Mae and Freddie Mac usually borrow at interest rates:

• A) below what private lenders pay.
• B) exceeding what private lenders pay.
• C) that are the same as private lenders since they are really a private lender.
• D) that are slightly below the federal funds rate.

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Definitions:

Business success

The achievement of desired financial and operational goals within a business, often measured by profitability, market share, and customer satisfaction.

Operational

Pertaining to the day-to-day functions and activities necessary for an organization or process to run effectively.

Risk environments

Contexts or situations that expose individuals or organizations to hazards or potential harm related to their activities or decisions.

Assign probabilities

The act of estimating the likelihood of various outcomes or events happening.