In Regards to Ginnie Mae, Which of the Below Statements

question 38

Multiple Choice

In regards to Ginnie Mae, which of the below statements is FALSE?

• A) Ginnie Mae, like Fannie Mae and Freddie Mac, was created by Congress to increase the supply of capital to the residential mortgage market and to provide support for an active secondary market.
• B) When Ginnie Mae guarantees securities issued by approved lenders, Ginnie Mae permits these lenders to convert illiquid individual loans into liquid securities backed by the U.S. government.
• C) Ginnie Mae is a federally related institution and, as a result, the pass-through securities that it guarantees carry the full faith and credit of the U.S. government.
• D) Pass-through securities that carry Ginnie Mae's guarantee and bear its name are issued by lenders approved by the federal government and these lenders do not include thrifts.

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Definitions:

Accounts Receivable

Outstanding amounts due to a firm from customers for goods or services already delivered.

Cost of Goods Sold

Costs directly associated with the manufacturing of products that a business sells.

Collection Period

The standard timeframe for a corporation to collect receivables from its clientele.

Receivables Period

is the average number of days it takes for a business to collect payments from its customers after a sale has been made, indicating the efficiency of its credit and collection policies.