1. The commercial paper issued by finance companies is often purchased by
A) money market mutual funds and short-term bond funds.
B) Individual investors.
C) Government sponsored enterprises Fannie Mae and Freddie Mac.
D) Pension funds.
2. Prior to the financial crisis of 2007-2009,
A) housing prices were very volatile.
B) borrowers rarely defaulted on mortgages.
C) the deliquency rate on mortgages was about 5%.
D) housing prices remained unchanged for a long time.