Created to issue its own debt securities to obtain funds that are invested in mortgages made to low to moderate income home purchasers
A) Government National Mortgage Association
B) Federal National Mortgage Association
C) Federal Home Loan Mortgage Corporation
D) Federal Reserve System

Question

Quizplus · Accepted Answer

The Government National Mortgage Association (GNMA), also known as Ginnie Mae, is a government agency that provides a secondary market for government-backed mortgages, primarily those made to low to moderate income homebuyers. GNMA issues its own debt securities to obtain funds to invest in mortgages made by private lenders, which helps to ensure that these mortgages remain available to consumers, even during times of economic uncertainty. Federal National Mortgage Association (FNMA), also known as Fannie Mae, and Federal Home Loan Mortgage Corporation (FHLMC), also known as Freddie Mac, are other government-sponsored entities that provide a secondary market for mortgages, but they primarily focus on conventional mortgages. The Federal Reserve System is the central banking system of the United States and is responsible for conducting monetary policy, supervising and regulating banks, and maintaining the stability of the financial system. It is not directly involved in the mortgage market.

Created to Issue Its Own Debt Securities to Obtain Funds