When the Fed Sells Bonds in the Open Market, We

question 48

Multiple Choice

When the Fed sells bonds in the open market, we can expect the

• A) exchange rate to rise and interest rates to fall.
• B) exchange rate and interest rates to rise.
• C) exchange rate to fall and interest rates to rise.
• D) exchange rate and interest rates to fall.

---

Definitions:

Judiciary

The branch of government responsible for interpreting the law, resolving legal disputes, and administering justice. It primarily consists of judges and courts.

Legislatures

Lawmaking bodies within a government, responsible for creating statutes and policies.

Charter of Rights and Freedoms

A foundational legal document in Canada that protects individual rights and freedoms from actions and policies of all levels of government.

Common Law

The body of law derived from judicial decisions and customs, as opposed to statutes or written legislation.