Which of the following was the result of Fannie Mae and Freddie Mac being both privately-owned and government-sponsored enterprises?
A) Their government sponsorship increased their cost of acquiring loanable funds.
B) They were unable to earn profits and pay dividends to their shareholders.
C) Congressional regulations exerted little or no impact on their business operations.
D) Their activities were more susceptible to political influence and favoritism.

Question

Quizplus · Accepted Answer

Their status as government-sponsored enterprises made them more susceptible to political influence and favoritism, as they had to balance private profit motives with public policy goals.

Which of the Following Was the Result of Fannie Mae