SIE Understanding Products and Their Risks Question 7: Answer and Explanation

Question: 7

Which of the following is an agency of the federal government?

• A. Federal Home Loan Mortgage Corporation (FHLMC, or Freddie Mac)
• B. Government National Mortgage Association (GNMA, or Ginnie Mae)
• C. The Federal Farm Credit Banks (FFCBs)
• D. The Federal National Mortgage Association (FNMA, or Fannie Mae)

Correct Answer: B

Explanation:

B: The Government National Mortgage Association (GNMA, or Ginnie Mae) is an agency of the federal government. Choices A, C, and D are government-sponsored enterprises (GSEs).