Fannie Mae and Freddie Mac Both

question 63

Multiple Choice

Fannie Mae and Freddie Mac both

• A) sell bonds to investors and use the funds to purchase mortgages.
• B) help regulate the banking system.
• C) directly lend funds to people seeking mortgages.
• D) reduce access to funds for mortgages by purchasing existing mortgages.

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Definitions:

Income Received

The amount of money or monetary value received by an individual or entity in exchange for goods provided, services rendered or as a return on investments.

Middle Three Quintiles

The segments of the population that fall into the second, third, and fourth quintiles when dividing the total population into five equal groups based on income or wealth.

Income Received

It refers to the total amount of money obtained by individuals or entities typically through employment, investments, or other sources.

Upper Quintiles

Refers to the top 20% of a population in terms of income or wealth distribution.