26-67 Which of the Following Are Functions of GNMA

question 49

Multiple Choice

26-67 Which of the following are functions of GNMA?

• A)Engaging in swap transactions where it swaps mortgage-backed securities with an FI for original mortgages.
• B)Sponsors mortgage-backed securities programs by FIs such as banks,thrifts,and mortgage bankers.
• C)Acts as a guarantor to investors in mortgage-backed securities regarding the timely pass-through of principal and interest payments on their sponsored bonds.
• D)All of the above.
• E)Answers B and C only.

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Definitions:

Allowance Account

A contra asset account associated with accounts receivable that estimates the amount of receivables that may not be collected.

Doubtful Accounts

An estimate of the debts owed to a company that may not be collected, often listed as a contra account to accounts receivable.

Accounts Receivable

Funds that are yet to be paid by customers for the products or services they have received from a business.

Credit Sales

Credit Sales are sales made on credit, where the payment is received after the sale has been made, effectively extending a line of credit to the customer.