ECONTest Bank CERTIFICATION GUIDE
FOR 2025/2026 TESTS|MOST COMMON
QUESTIONS WITH CORRECTLY VERIFIED ANSWERS
(LATEST QUIZZES) |ALREADY A+
GRADED|GUARANTEED PASS
One of the reasons home ownership was so low prior to World War II is that families typically
needed to pay _______ of the price upfront, in cash. - 50%
The federal agency that was created during the Great Depression to provide a stable source of
funds to member firms for residential mortgage and economic developement loans was called
______________________. - Federal Home Loan Bank (FHLB) System
In addition to the need for a hefty down payment, buying a home prior to WWII was challenging
because _______________. - instead of 15-30 years to repay a loan, borrowers had only
5 years
The federal agency created during the Great Depression to establish a secondary mortgage
market by purchasing FHA-insured loans at par and accured interest was the
________________. - Federal National Mortgage Association (FNMA)
A major challenge for banks with lots of mortgage loans is a lack of liquidity. The solution to this
problem has been the emergence of _______________. - a secondary mortgage market
Problems that the early mortgage-backed assets faced were ________ risk and ________ risk,
which limited the amount of interest paid. - curtailment; prepayment
Loans that are made to borrowers with substandard qualifications are referred to as
__________ mortgage loans. - subprime
In order to be able to create mortgage pools with conventional loans as Fannie Mae did with
FHA and VA loans, in 1970 Congress created the ____________. - Federal Home Loan
Mortgage Corporation (Freddie Mac)
Prior to WWII, home ownership rates in the United States were generally less than _________. -
50%
FOR 2025/2026 TESTS|MOST COMMON
QUESTIONS WITH CORRECTLY VERIFIED ANSWERS
(LATEST QUIZZES) |ALREADY A+
GRADED|GUARANTEED PASS
One of the reasons home ownership was so low prior to World War II is that families typically
needed to pay _______ of the price upfront, in cash. - 50%
The federal agency that was created during the Great Depression to provide a stable source of
funds to member firms for residential mortgage and economic developement loans was called
______________________. - Federal Home Loan Bank (FHLB) System
In addition to the need for a hefty down payment, buying a home prior to WWII was challenging
because _______________. - instead of 15-30 years to repay a loan, borrowers had only
5 years
The federal agency created during the Great Depression to establish a secondary mortgage
market by purchasing FHA-insured loans at par and accured interest was the
________________. - Federal National Mortgage Association (FNMA)
A major challenge for banks with lots of mortgage loans is a lack of liquidity. The solution to this
problem has been the emergence of _______________. - a secondary mortgage market
Problems that the early mortgage-backed assets faced were ________ risk and ________ risk,
which limited the amount of interest paid. - curtailment; prepayment
Loans that are made to borrowers with substandard qualifications are referred to as
__________ mortgage loans. - subprime
In order to be able to create mortgage pools with conventional loans as Fannie Mae did with
FHA and VA loans, in 1970 Congress created the ____________. - Federal Home Loan
Mortgage Corporation (Freddie Mac)
Prior to WWII, home ownership rates in the United States were generally less than _________. -
50%
