Capital market instruments: Federal agency bonds True or False: Federal agency bonds are not backed by the full faith and credit of the U.S. government True False What is another name for Freddie Mac? The Federal National Mortgage Association The Federal Home Loan Mortgage Association The National Mortgage and Home Association The Federal Mortgage Loan Association What traditional strategy does Freddie Mac use to help create liquidity in mortgage markets? Issuing bonds and using the proceeds to purchase very risky subprime mortgages on the primary mortgage market Issuing bonds and using the proceeds to purchase high-quality mortgages on the secondary mortgage market Underwriting mortgage loans Issuing bonds and using the proceeds to purchase high-quality mortgages on the primary mortgage market