Secondary mortgage market purpose

The main purpose of the secondary mortgage market is to:

  1. help strike a balance between the demand for real estate loans and the supply of money available for real estate loans.
  2.  allow people to bundle up mortgages into securities
  3. allow for anyone with enough money to invest in mortgages
  4.  allow for banks to offset some of the risks of lending

The answer is A – explain that it’s the best answer and why (A taken directly from PDF).  By allowing people to