The Net Effect of Government Supported Organizations Such as Fannie

question 10

Multiple Choice

The net effect of government supported organizations such as Fannie Mae,Ginnie Mae,and Freddie Mac is to:

• A)To broaden credit and offer it at a cheaper rate than might otherwise prevail.
• B)To narrow credit but offer it at a cheaper rate than might otherwise prevail.
• C)To broaden credit but offer it at a more expensive rate than might otherwise prevail.
• D)To narrow credit and offer it at a more expensive rate than might otherwise prevail.
• E)None of the above.

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Definitions:

Admission Fee

A charge for entry, often used in the context of events, clubs, or institutions.

Capital Balance

The amount of money in a firm's capital account, reflecting the owner's initial investment plus retained earnings.

Profits and Losses

A financial statement that shows the revenue, costs, and expenses over a certain period, determining the company's net income or loss.

Admitted

In insurance, relates to insurers that are officially authorized to do business in a particular state.