Which of the following statement about Fannie Mae and Freddie Mac is false?

a)
b)
c)
d)

Fannie Mae and Freddie Mac had implicit government guarantee

Fannie Mae and Freddie Mac collapsed because of funding maturity mismatch
Fannie Mae and Freddie Mac used inaccurate mathematical models
Fannie Mae and Freddie Mac Initially played down the dangers posed by an inflated
housing market

Which of the following risks was involved in Fannie Mae and Freddie Mac cases?
a)
b)
c)
d)

Operational Risk
Market Risk and Credit Risk
Credit Risk
Operational Risk, Market Risk, Credit Risk

Which of the following are the results of pressure to grant home loans to low income
families in Fannie Mae and Freddie Mac cases?
a)
b)
c)
d)

Due diligence
Riskier mortgages where issued
Fannie Mae and Freddie Mac started selling option ARMs
Decrease in leverage

Which of the following statement WaMu is true?

a)
b)
c)
d)

It relied on FHLB for funding

It didnt rely on wholesale funding
It was funded with Providian assets
It was funded with Long Beach Mortgage assets

Which of the following statement WaMu is true?

a) WaMu was rescued by the Fed
b) WaMu remained legally solvent throughout the crisis
c) WaMu was seized by regulators and immediately sold to another bank
d) WaMu escaped bankruptcy after support from its holding company

Which of the following statement about BOE in Northern Rock case is false?
a) BOE acted as lender of last resort
b) Its intervention created serious moral hazard issues
c) The interest rate charged by BOE during the rescue led to NR business insolvency
d) NR was forced to seek substantial assistance from the BOE

Which of the following was not a risk incurred by Northern Rock?

I.
Market Risk
II.
Operational Risk
III.
Credit Risk
IV.
Reputation Risk
a)
b)
c)
d)

I & II
II
III
IV