Latest 2023 8004 Exam Success with Comprehensive Guide Questions Answers

1. Success with 8004 Exam Comprehensive Guide to Ace the Exam Question Answers PDF Introduction: Embarking on the journey to pass the 8004 exam ? Look no further! Our meticulously crafted 8004 Exam Question Answers PDF is your ultimate companion in conquering the challenges of this certification. This comprehensive guide is designed to equip you with the knowledge and skills needed to excel, ensuring a seamless path to success in your exam. Visit here: https://www.certswarrior.com/exam/8004/ Question: 1 When Fannie Mae and Freddie Mac were taken under US government conservatorship, which of the following was not included within their operating mandate? A. Fannie Mae and Freddie Mac will continue to buy home loans from banks to repackage them as mortgage-backed securities B. The US government will provide capital as needed in return for preferred shares in the companies C. The US government will buy mortgage-backed securities in the open market as needed D. There was a 2 year limit to the conservatorship Answer: D Question: 2 Which of the following was not cited within the chain of miscalculations and deferred decisions for the downfall of Fannie Mae and Freddie Mac A. Extreme exposure to foreign currency exposures and losses from non-US$ mortgages B. Lawmakers postponed strenghtening regulatory oversight due to partisan infighting C. Under-management and under-measurement of market and liquidity risk D. They did not raise enough capital to weather the storm as the housing slump expanded Answer: A Question: 3 As a result of the US government's intervention, which of the following is true? A. The cost of borrowing for Fannie Mae and Freddie Mac should decline because the government will be standing behind their debts and the buying and selling of mortgage debt will continue B. The cost of borrowing for house buyers will rise because of the risk premium now built into the cost of such a government guarantee C. The systemic risks still remain in the housing market because it increases the US government's debt D. Foreign Central Banks will continue to sell their holdings of Fannie Mae and Freddie Mac securities

2. Answer: A Question: 4 The financial intermediary services provided by Fannie Mae and Freddie Mac were designed to A. Offer loans directly to the consumer B. Compete directly with banks in selling mortgaged to would-be home owners C. Repackage mortgage loans made by banks and sell them on to investors as asset backed securities D. Buy mortgage-backed loans for banks and keep them all on their books, using them as collateral for the US government to borrow Answer: C Question: 5 The "Renewing the Dream" program signed into law by President George W Bush in 2002 was designed to A. Recapitalise Fannie Mae and Freddie Mac with US$2.4 billion of additional capital to ensure they weathered the risks associated with any future downturn in the housing markets B. Provide grants of US$800 million to help home buyers with down-payment and closing costs C. Allow risky, high-cost loans to be credited towards affordable housing goals D. Provide tax credits of nearly US$2.4 billion over the next 5 years to investors and builders who developed affordable single-family housing in poor and distressed areas Answer: D Question: 6 The steps which the US Treasury Department and the Federal Reserve took in July 2008 to boost confidence in both Fannie Mae and Freddie Mac did not include which one of the following: A. Access to the Federal Reserve discount window B. Removing the prohibition on the Treasury Department to buy both companies stock C. Restricting the sale of new Fannie Mae and Freddie Mac securities only to US citizens D. Reiterating their belief that both companies played a central role in the US housing finance system Answer: D Visit here: https://www.certswarrior.com/exam/8004/ Our 8004 Exam Question Answers PDF is a comprehensive resource that caters to the diverse needs of individuals aspiring to succeed in the 8004 certification. Developed by industry experts, this guide is a treasure trove of knowledge, providing detailed insights into each aspect of the exam.