1. Which of the following guarantees mortgages?

A. FDIC

B. FED

C. FOMC

D. Veterans Administration

2.What is the mortgage loan-to-value threshold above which private mortgage insurance (PMI) is required by the lender?

Remember, the loan-to-value ratio is calculated as: 1 - % equity ownership. Therefore, you can think of the loan-to-value ratio as the percent of the value that is financed.

A. 90%

B. 80%

C. 50%

D. 70%