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.
Correct Answer:
Verified
Q2: The agency mortgage-backed security market includes three
Q3: _ is created by redistributing the cash
Q4: Although the priority rules for the disbursement
Q5: A mortgage pass-through security _.
A) is a
Q6: One of the three key innovations in
Q8: The cash flow of a mortgage pass-through
Q9: The mission of Fannie Mae and Freddie
Q10: In regards to the conditional prepayment rate
Q11: In terms of market size, the agency
Q12: Some institutional investors are concerned with extension
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