Finance
The secondary mortgage market in the United States primarily functions to:
ASet mortgage interest rates nationwide
BProvide liquidity to lenders by purchasing mortgages, enabling lenders to originate more loans✓ Correct
CInsure mortgages against default
DRegulate the activities of Mississippi mortgage lenders
Explanation
The secondary mortgage market (Fannie Mae, Freddie Mac, Ginnie Mae) purchases loans from primary market lenders, replenishing their capital so they can make more loans. This liquidity is essential to the functioning of the housing finance system.
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