Fannie Mae and Freddie Mac ________.
A)are U.S. government agencies that provide funds to the mortgage market
B)are the names of U.S. central banks
C)demonstrated great stability during the subprime crisis
D)are pivot points in the business cycle

Question

Quizplus · Accepted Answer

Fannie Mae (Federal National Mortgage Association) and Freddie Mac (Federal Home Loan Mortgage Corporation) are U.S. government-sponsored enterprises (GSEs) that provide funds to the mortgage market by purchasing mortgages from lenders and selling them to investors as mortgage-backed securities.