Practice Quiz

FRM Financial Risk Manager Practice Test

Category - Terms and concepts

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What is Fannie Mae?
  1. A well known wholesale chain in America.
  2. The Federal National Mortgage Association (FNMA).
  3. The name of a brand for electronic fans.
  4. The Federal Home Loan Mortgage Corporation.
  5. All of the above.
Explanation
Fannie Mae is the Federal National Mortgage Association (FNMA). It buys mortgages and securitizes them to make sure that funds are always available for institutions to lend money to home buyers.

Key Takeaway: By late 2007, Fannie Mae lost more than 90% of its share value and had to be bailed out by the federal government.
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