Which of the Following Factors Occurred in the Early 2000s

question 63

Multiple Choice

Which of the following factors occurred in the early 2000s and created concerns about the ability of Fannie Mae and Freddie Mac to manage their portfolios of assets?

• A)Fannie Mae miscalculated the value of its mortgages that created a restatement of its stockholder equity.
• B)Both agencies overcharged lenders for services they provided.
• C)Fannie Mae operated for some time with a sharp increase in interest rate risk on its balance sheet.
• D)All of the options.

Describe the process through which needs become actualized into wants and goals.

Understand the relationship between motivation, goal setting, and consumer decision-making.

Appreciate the role of incentives and outcomes in shaping consumer behavior.

Analyze scenarios to identify underlying motivational conflicts and needs.

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Definitions:

Output Level

Refers to the total quantity of goods or services produced by an entity in a given period.

Economic Profit

The difference between a firm's total revenue and all costs, including both explicit and opportunity costs, indicating the overall profitability beyond the financial gain.

Demand Schedule

A table that lists the quantity of a good or service that consumers are willing and able to purchase at various prices.

Entry Of Firms

The process where new businesses enter a market to compete with existing firms, contributing to innovation, competition, and potentially altering market dynamics.