In 2008, as a result of a run on government-sponsored enterprise debt, the U.S. Treasury placed Fannie Mae and Freddie Mac in:
A) conservatorship.
B) receivership.
C) bankruptcy.
D) trusteeship.

Question

Quizplus · Accepted Answer

The U.S. Treasury placed Fannie Mae and Freddie Mac in conservatorship in 2008 as a result of a run on government-sponsored enterprise debt. Conservatorship allowed the government to take control of the companies, inject capital, and stabilize the mortgage market. Receivership, bankruptcy, and trusteeship were not the chosen options by the government.

In 2008, as a Result of a Run on Government-Sponsored