New Jersey Real Estate License Exam Practice Question
Which government agency provides secondary market support by purchasing FHA and VA loans?
Correct Answer: C
Rationale: Ginnie Mae is the agency that provides secondary market support by purchasing FHA and VA loans, ensuring liquidity and stability in the housing market.
A: The Federal Reserve primarily manages monetary policy and does not directly engage in purchasing loans from the secondary market.
B: Fannie Mae focuses on conventional loans rather than specifically on FHA and VA loans, which are backed by Ginnie Mae.
D: The Farmer's Home Administration provides loans directly to farmers and rural residents, rather than participating in secondary market activities for FHA and VA loans.
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