Freddie Mac and Fannie Mae

question 23

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 interests of consumers.
• E)acted in the best interests of lenders.

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Definitions:

Expected Returns

The anticipated return on an investment, taking into account all known risks and rewards associated with it.

Equilibrium

A condition or state in which economic forces are balanced, such as when supply equals demand in a market.

Expected Total Return

The anticipated return on an investment over a given period, including both capital gains and income from dividends or interest.

Constant

A fixed value in mathematics and physics that does not change, or a situation in finance where certain conditions, like interest rate, remain unchanged over a period.