Which One of the Following Is the Key Function of GNMA

question 88

Multiple Choice

Which one of the following is the key function of GNMA?

• A)providing direct financing for first-time home buyers only
• B)directly refinancing existing home mortgages
• C)providing mortgage funds to military personnel only
• D)providing direct financing to first-time home buyers, military personnel, and farmers
• E)sponsoring the repackaging of mortgages into mortgage-backed securities pools

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Definitions:

Categorical Grants

Funds provided by Congress to states and localities that are earmarked for specific purposes defined by federal law.

Tax Expenditures

Refers to revenue losses attributable to provisions of the federal tax laws which allow a special exclusion, exemption, or deduction.

Commerce Clause

A provision in the United States Constitution that grants Congress the power to regulate trade between the states, with foreign nations, and among Indian tribes.

Power to Tax

The authority granted to government entities to impose levies on individuals and corporations to fund public services and initiatives.