An Open Market Purchase

question 30

Multiple Choice

An open market purchase

• A)decreases the price of Treasury securities and also decreases their yield.
• B)increases the price of Treasury securities and decreases their yield.
• C)increases the price of Treasury securities and also increases their yield.
• D)decreases the price of Treasury securities and increases their yield.

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Definitions:

Net Book Value

The value of an asset as recorded on the balance sheet, calculated by subtracting accumulated depreciation or amortization from the asset's original cost.

Depreciation Expense

Distributing the expense of a physical asset over its life expectancy.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against a fixed asset over its useful life.

Unearned Revenue

Money received by a company for goods or services that have not yet been provided, recorded as a liability until the goods or services are delivered.