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In Regards to Fannie Mae and Freddie Mac, Which of the Below

Question 7

Multiple Choice

In regards to Fannie Mae and Freddie Mac, which of the below statements is FALSE?


A) The mortgage-backed securities issued by Fannie Mae and Freddie Mac are commonly referred to as "agency MBS."
B) The mortgage-backed securities issued by Fannie Mae and Freddie Mac are in fact shareholder-owned corporations chartered by Congress to fulfill a public mission.
C) The stocks for Fannie Mae and Freddie Mac largely trade over-the-counter.
D) Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs) that (in early September 2008) were taken over by the U.S. government because of the financial difficulties it faced as a result of the subprime mortgage crisis.

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