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State and Local Governments Make Mortgage Loans at Below-Market Rates

Question 49

Multiple Choice

State and local governments make mortgage loans at below-market rates of interest because


A) they want to compete with the thrifts.
B) they want to help local thrift institutions.
C) they can obtain funds for mortgage financing cheaply by selling tax-exempt securities.
D) they lend to lower income, larger home buyers.

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