Mortgage-backed securities (MBSs) offered by Fannie Mae and Freddie Mac were an attractive alternative to bonds for many buyers because MBSs:
A) were highly liquid.
B) paid higher interest than other safe assets.
C) appeared to have implicit government backing.
D) All of the above are correct.
Correct Answer:
Verified
Q23: And are mortgage agencies that raise funds
Q24: By 2009, over of all mortgages were
Q25: A bank's net worth is also called
Q26: On a bank's balance sheet, which of
Q27: In 2008, the Federal Government Fannie Mae
Q29: A reason for "securitizing" mortgages is to
Q30: The catalyst for the subprime market crisis
Q31: Credit ratings reduce:
A)credit rationing.
B)moral hazard.
C)adverse selection.
D)venture capital.
Q32: On a bank's balance sheet, which of
Q33: Traditional mortgages require , while some subprime
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents