Question

Established as the Federal Home Loan Mortgage Corporation in 1970, ___ is a government-sponsored enterprise that buys mortgages mostly from smaller financial entities, which it bundles and sells as mortgage-backed securities.

a) Ginnie Mae
b) Fannie Mae
c) Freddie Mac
d) FHA

Answer 1

The Federal Home Loan Mortgage Corporation, also known as Freddie Mac, is the correct answer to this question. It is a government-sponsored enterprise that purchases mortgages and sells them as mortgage-backed securities.

Step-by-step explanation:

The subject of this question is Social Studies and specifically, it falls under the topic of Economics. The correct answer to the question is Freddie Mac. Established as the Federal Home Loan Mortgage Corporation in 1970, Freddie Mac is a government-sponsored enterprise that buys mortgages mostly from smaller financial entities, which it bundles and sells as mortgage-backed securities.