Federal Govt. Factors

Question 0

The government’s plan for spending taxation & debt management. The legislative and executive branches of government enact this policy by passing legislation that sets the government’s priorities for how much money will be collected, how it will be collected, and it will be spent.

Answer 0

Fiscal policy

Question 1

Is the means by which the government can exert control over the supply and cost of money. The Federal Reserve Board referred to as the FED is responsible for this US policy.

Answer 1

Monetary policy

Question 2

Through this policy the FED can make more or less money available for banks to lend, which raises or lowers interest rates.

Answer 2

Monetary policy

Question 3

This policy influences real estate through the amount of taxes collected and by incentives in the tax code.
Higher taxes result in less spending by people and businesses and more by government. This hinders real estate because the government doesn’t typically buy or build houses.

Answer 3

Fiscal policy

Question 4

FED

Answer 4

Federal Reserve Board

Question 5

A percentage of the customers deposits that commercial banks are required to keep on deposit,either on hand in at the bank’s own accounts. Lowering these requirements lowers interest rates.

Answer 5

Reserve requirements

Question 6

These are interest rates charged by the federal reserve bank loans to members of commercial banks. When the FED increases this increase is passed along to customers in the form of higher interest rates. Lowering this also lowers interest rates.

Answer 6

Federal discount rates

Question 7

These are the federal reserve board (FED) selling or buying government securities.

Answer 7

Open market operations

Question 8

Is essentially trying to use persuasive influences on the public and financial market to perceive credit in a specific way. It is the application of pressure, not force by and authority. Such as the Federal Reserve Board, to get members to adhere to a policy.

Answer 8

Moral suasion

Question 9

Are the private sector’s and government agencies that buy and sell real estate mortgages. _______ buy real estate loans as an investment vehicles adding to the supply of money available for more loans from all over the country.

Answer 9

Secondary mortgage markets

Question 10

Fannie Mae

Answer 10

Federal National Mortgage Association

Largest residential investor in residential mortgages.

Question 11

Freddie Mac

Answer 11

Federal Home Loan Mortgage Corporation

Question 12

Ginnie Mae

Answer 12

The Governmental National Mortgage Association

Question 13

These agencies have an important impact on the real estate market in all areas of the country. First by buying up mortgages from local banks, those local banks now have more funds to lend again to other potential homeowners in their area.

Answer 13

Secondary mortgage markets

Question 14

Provides mortgage insurance known as mortgage insurance premium (or MIP) to help people to have smaller down payments qualify for home mortgages by ensuring lenders against losses on the mortgage loan.

Answer 14

FHA (Federal housing administration)

Question 15

Is also administered by the federal government (but not through HUD). This guarantees mortgage loans for eligible veterans even allowing them to buy a home with no down payment, by guaranteeing payment to lenders.

Answer 15

The VA (The veterans administration)

Question 16

The process of the government levying the charge on people or other things for specific purposes.

Answer 16

Taxation