General Education Development (GED) Practice Exam

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Prepare for your GED Exam with our comprehensive quiz. Study with flashcards and multiple choice questions, each providing hints and explanations. Set yourself on the path to success!

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Which of the following best describes Congress' purpose in setting up Freddie Mac in 1970?

Expanding opportunities for home ownership
Deregulating the credit market
Improving regulation of the Internet
Creating a place for small businesses to get loans

The correct answer is: Expanding opportunities for home ownership

The establishment of Freddie Mac (Federal Home Loan Mortgage Corporation) in 1970 was primarily aimed at expanding opportunities for home ownership. This government-sponsored enterprise was created to increase the availability of mortgage funds, thereby making it easier for individuals to obtain loans for purchasing homes. By providing liquidity, stability, and affordability to the mortgage market, Freddie Mac helps to ensure that there are enough mortgage funds available, which ultimately supports the goal of making home ownership more accessible to a broader segment of the population. This contrasts with the other answer choices. The creation of Freddie Mac was not focused on deregulating the credit market; rather, it involved regulating just enough to stabilize the housing finance system. Additionally, it did not concern Internet regulation, nor was it intended to serve as a direct source of loans for small businesses, as its mission is specifically tied to the residential housing market. Thus, the correct answer reflects Congress' intent to facilitate home ownership through improved access to mortgage financing.