The net effect of government supported organizations such as Fannie Mae,Ginnie Mae,and Freddie Mac is to:
A)To broaden credit and offer it at a cheaper rate than might otherwise prevail.
B)To narrow credit but offer it at a cheaper rate than might otherwise prevail.
C)To broaden credit but offer it at a more expensive rate than might otherwise prevail.
D)To narrow credit and offer it at a more expensive rate than might otherwise prevail.
E)None of the above.

Question

Quizplus · Accepted Answer

The government-supported organizations such as Fannie Mae, Ginnie Mae, and Freddie Mac aim to broaden credit and offer it at a cheaper rate than might otherwise prevail. They achieve this by creating a secondary market for mortgages, thereby increasing the availability of credit for homebuyers. This, in turn, makes it easier for people to own homes and promotes economic growth.

The Net Effect of Government Supported Organizations Such as Fannie