Why did government-sponsored enterprises (GSEs) such as Freddie Mac and Fannie Mae have substantially higher leverage ratios
Question:
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 76% (13 reviews)
High leverage ratios resulted from the implicit guarantee ...View the full answer
Answered By
Rinki Devi
Professional, Experienced, and Expert tutor who will provide speedy and to-the-point solutions.
Hi there! Are you looking for a committed, reliable, and enthusiastic tutor? Well, teaching and learning are more of a second nature to me, having been raised by parents who are both teachers. I have done plenty of studying and lots of learning on many exciting and challenging topics. All these experiences have influenced my decision to take on the teaching role in various capacities. As a tutor, I am looking forward to getting to understand your needs and helping you achieve your academic goals. I'm highly flexible and contactable. I am available to work on short notice since I only prefer to work with very small and select groups of students.
I have been teaching students for 5 years now in different subjects and it's truly been one of the most rewarding experiences of my life. I have also done one-to-one tutoring with 100+ students and helped them achieve great subject knowledge.
5.00+
2+ Reviews
10+ Question Solved
Related Book For
Money Banking and Financial Markets
ISBN: 978-0078021749
4th edition
Authors: Stephen Cecchetti, Kermit Schoenholtz
Question Posted:
Students also viewed these Banking questions
-
Fannie Mae is a government sponsored organization that was established in 1938 after the Depression to provide local banks with money from the federal government to be used for residential mortgages...
-
Explain the role of Fannie Mae and Freddie Mac in the U.S. housing market.
-
Explain the importance of Fannie Mae and Freddie Mac to the housing finance system in the United States.
-
Apply Theorem 3 to calculate the matrix exponential e At for each of the matrices in Problems 35 through 40. A = 13 3 3 3 01 3 3 00 23 0002
-
A feedback system has a plant transfer function 10 = G(s) = s(..70) R(S)
-
Milden Company is a distributor who wants to start using a contribution format income statement for planning purposes. The company has analyzed its expenses and developed the following cost formulas:...
-
As shown in Fig. P9.74, the aerodynamic drag on a truck can be reduced by the use of appropriate air deflectors. A reduction in drag coefficient from \(C_{D}=0.96\) to \(C_{D}=0.70\) corresponds to a...
-
A firm had the following values for the four debt ratios discussed in the chapter: Liabilities to Assets Ratio: less than 1.0 Liabilities to Shareholders Equity Ratio: equal to 1.0 Long-Term Debt to...
-
The company's consolidated statement of income is provided below: (in millions of dollars) Revenues Sales by company-operated restaurant stores Revenue from franchised stores Total revenues Years...
-
Each year Forbes reports on the value of all teams in the National Football League. Although England's soccer team, Manchester United, is the most valuable team in the world ($1.8 billion), the NFL...
-
Compare and contrast the structures of bank holding companies, financial holding companies and universal banks.
-
Consider two countries with the following characteristics. Country A has no restrictions on bank branching and banks in Country A are permitted to offer investment and insurance products along with...
-
A relay race is run along a straight-line track of length 300.0 m running south to north. The first runner starts at the south end of the track and passes the baton to a teammate at the north end of...
-
After successful stretches at Target and Apple, it seemed as though Ron Johnson was a master marketer. But things went sour quickly after JC Penney hired him as its CEO. Johnsons attempt to reinvent...
-
How did the Fed hit its target for the federal funds rate in the pre-2008 scarce-reserves regime?
-
What is the zero lower bound in monetary policy? What tools can the Fed use if it wants to implement an expansionary monetary policy at the zero lower bound?
-
Trademark disputes often pit a large company against a startup. This is a David-versus-Goliath type of scenario, with a small entity on one side against a giant on the other. Commonly, this type of...
-
A feature on the Wall Street Journals website titled The Fed: Questions & Answers contains the following statement: The Fed cant control inflation or influence output and employment directly;...
-
With y = (x) as in Figure 11, let A(x) = So f(t) dt and = S B(x) = f(t) dt
-
Modify the counter from Exercise 5.44 such that the counter will either increment by 4 or load a new 32-bit value, D, on each clock edge, depending on a control signal Load. When Load = 1, the...
-
State-local governments often use their borrowing authority to provide low-cost loans to the private sector through the sale of tax-exempt revenue bonds. Taking mortgage revenue bonds as an example,...
-
The central bank of a country facing economic and financial market difficulties asks for your advice. The bank hit the zero bound with its policy interest rate but it wasnt enough to stabilize the...
-
Suppose ECB officials ask your opinion about their operational framework for monetary policy. You respond by commenting on their success at keeping short-term interest rates close to target but also...
-
Why might sterilized foreign-exchange market intervention have a greater impact on the exchange rate in times of financial stress than in times of normal market conditions?
-
16. Nickel Inc. bought $500,000 of 3-year, 9% bonds as an investment on December 31, 2015 for $545,000. Nickel uses straight-line amortization. On May 1, 2016, $100,000 of the bonds were redeemed at...
-
5. Recursive method; what is printed if we call mystery (6, 12); public static void mystery (int x, int y) { if (x > y) { System.out.print ("/"); else if (x = y) { } else { System.out.print ("=" + y...
-
Simmonds Products has spent $158,500 (sunk cost) on research to develop low-fat imitation wine. The firm is planning to spend $210,000 on a machine to produce new wine. Shipping cost of $60,000 and...
Study smarter with the SolutionInn App