Fannie Mae, Freddie Mac Permitted to Boost Capital Cushions

Fannie Mae, Freddie Mac Permitted to Boost Capital Cushions

Assessment

Interactive Video

Business, Social Studies

University

Hard

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The transcript discusses the challenges hedge funds face due to the net worth sweep, which requires Fannie Mae and Freddie Mac to send profits to the Treasury. It explores the political landscape, highlighting how Democrats like Elizabeth Warren may oppose policies benefiting hedge funds. The discussion includes the need for Fannie and Freddie to build capital buffers before exiting federal control, with a timeline extending possibly to 2021. Market reactions to political statements and the volatility of Fannie and Freddie stocks are also covered.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the main argument of hedge funds regarding the profits of Fannie Mae and Freddie Mac?

They should be donated to charity.

They should be used for affordable housing.

They should be reinvested in the companies.

They should be distributed as dividends to shareholders.

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How do Democrats view the role of Fannie Mae and Freddie Mac?

As businesses that should be privatized immediately.

As entities that should remain under federal control.

As companies that should focus on affordable housing.

As tools for enriching hedge funds.

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the earliest possible time frame for Fannie Mae and Freddie Mac to raise private capital according to Mark Calabria?

First quarter of 2020

Fourth quarter of 2020

Second quarter of 2021

Fourth quarter of 2021

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What factor is emphasized as crucial before Fannie Mae and Freddie Mac can go to market?

Government intervention

Immediate privatization

Process-driven approach

Calendar-driven deadlines

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What impact do comments from the Trump administration have on the stocks of Fannie Mae and Freddie Mac?

They have no impact on the stocks.

They stabilize the stock prices.

They cause the stocks to plummet.

They often lead to significant stock price increases.