In Regards to Fannie Mae and Freddie Mac, Which of the Below

question 26

Multiple Choice

In regards to Fannie Mae and Freddie Mac, which of the below statements is FALSE?

• A) The mortgage-backed securities issued by Fannie Mae and Freddie Mac are commonly referred to as "agency MBS."
• B) The mortgage-backed securities issued by Fannie Mae and Freddie Mac are in fact shareholder-owned corporations chartered by Congress to fulfill a public mission.
• C) The stocks for Fannie Mae and Freddie Mac largely trade over-the-counter.
• D) Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs) that (in early September 2008) were taken over by the U.S. government because of the financial difficulties it faced as a result of the subprime mortgage crisis.

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Definitions:

Diversity-of-Citizenship

A basis for federal court jurisdiction when the parties involved in a lawsuit are citizens of different states or a foreign country and the amount in dispute exceeds a specified threshold.

$75,000

A monetary amount, which could be specified in legal or financial contexts, such as a threshold for federal court jurisdiction in diversity cases in the United States.

Subject-Matter Jurisdiction

The jurisdiction of a tribunal to consider legal disputes within a certain category or connected to a particular topic.

In Personam Jurisdiction

A court's power to bring a person into its adjudicative process; jurisdiction over a person's rights, rather than over property.