Freddie Mac and Fannie Mae

question 17

Multiple Choice

Freddie Mac and Fannie Mae

• A) were created to support the U.S. housing market.
• B) stimulated the U.S. Housing Bubble.
• C) provided bailout funds to the U.S. Government.
• D) acted in the best interest of consumers.
• E) were created to support the U.S. housing market and stimulated the U.S. Housing Bubble.

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Definitions:

Accounts Payable

Liabilities or amounts owed by a company to its creditors for goods and services received that have not yet been paid for.

Journal Entry

A record in bookkeeping that documents every financial transaction, detailing the accounts affected and whether they are debited or credited.

Interest-Bearing Note

A debt instrument that pays interest to the holder, typically at a fixed rate, until the note reaches its maturity date.

360-Day Year

An accounting convention that simplifies interest calculation by assuming twelve 30-day months, used mainly in financial markets.