23-13 FNMA Does Not Hold the Mortgages It Purchases on Its

question 94

True/False

23-13 FNMA does not hold the mortgages it purchases on its balance sheet,thereby transferring credit and default risk to investors purchasing its securities.

---

Definitions:

Semiannually

Happens biannually, usually every six months.

Callable Bonds

Bonds that the issuer has the right to redeem before their maturity date at a predetermined price.

Fiscal Year

A 12-month period used for bookkeeping, financial reporting, and tax purposes, which may not coincide with the calendar year.

Interest Payable

The amount of interest expense that has been incurred but not yet paid by a company on its borrowings.