1. Which of the following statements regarding Fannie and Freddie is false?

a. both purchase loans directly from commercial banks

b. they extend loans directly to households who otherwise would not qualify for a mortgage

c. they purchased mortgage backed securities from private securitizers

d. they bundled loans into mortgage backed securities to sell to investors

2. The Fed makes loans to financial institutions:

a. in Washington D.C.

b. only if they are member banks

c. at the discount window

d. none of the above