Net Worth Is

question 201

Multiple Choice

Net worth is

• A)a measure of a firm's profits.
• B)part of stockholder equity.
• C)the difference between a firm's assets and liabilities.
• D)listed on the asset side of a firm's balance sheet.
• E)reported to the government for taxation.

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Definitions:

Housing Bust

A rapid decline in the market prices of residential properties, often following a period of unsustainable growth or speculation, leading to widespread financial and economic distress.

Fannie Mae

A government-sponsored enterprise (GSE) established to expand the secondary mortgage market by making mortgages more accessible to low- and middle-income borrowers.

Freddie Mac

A government-sponsored enterprise (GSE) focused on expanding the secondary mortgage market by buying loans from lenders, thereby providing liquidity, stability, and affordability in the housing market.

Secondary Mortgage Markets

Markets where lenders and investors buy and sell existing mortgages or mortgage-backed securities, providing liquidity and capital to the primary mortgage market.