26-66 Which of the Following Factors Occurred in the Early

question 42

Multiple Choice

26-66 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 above.
• E)Answers B and C only.

---

Definitions:

Work Processes

The structured set of activities and tasks conducted by individuals or groups within an organization to produce a desired output or outcome.

Workflow

The sequence of processes through which a piece of work passes from initiation to completion.

Computer-integrated Manufacturing

A method of manufacturing where the entire production process is controlled and monitored by computers, enhancing efficiency and flexibility.

Lean Production

A manufacturing methodology that focuses on minimizing waste within systems while simultaneously maximizing productivity.