Which of the Following Entities Acquire Mortgages and Create Mortgage

question 24

Multiple Choice

Which of the following entities acquire mortgages and create mortgage backed securities?

• A) Federal National Mortgage Association (Fannie Mae)
• B) Government National Mortgage Association (Ginnie Mae)
• C) Federal Home Loan Mortgage Corporation (Freddie Mac)
• D) All of the above.
• E) None of the above.

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Definitions:

Investing Activities

Transactions involving the acquisition or disposal of long-term assets and other investments not considered cash equivalents.

Financing Activities

Transactions related to raising capital or repaying investors, reflecting how a company funds its operations and growth.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting liabilities, representing ownership equity spread among shareholders.

Liabilities

Economic obligations or debts that a business owes to others, such as loans, accounts payable, and mortgages.