Most Investors Believed That Congress Would Never Allow Fannie Mae

question 88

Multiple Choice

Most investors believed that Congress would never allow Fannie Mae and Freddie Mac to fail,which enabled Fannie and Freddie to sell bonds with

• A) high interest rates because investors saw the bonds as having very low default risk.
• B) low interest rates because investors saw the bonds as having very low default risk.
• C) high interest rates because investors saw the bonds as having zero default risk.
• D) low interest rates because investors saw the bonds as having very high default risk.

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Definitions:

Credit Card Companies

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Unsupervised Learning

A type of machine learning where the algorithm learns patterns from untagged data without any guidance.

Data Labeling

The process of identifying raw data (such as images, text files, videos) and adding meaningful and informative labels to them, making it easier for machine learning models to understand.

Reinforcement Learning

An area of machine learning focused on how agents ought to take actions in an environment to maximize some notion of cumulative reward.