When the Fed Buys Bonds in the Open Market, We

question 20

Multiple Choice

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

• A) bond prices and interest rates to fall.
• B) bond prices to rise and interest rates to fall.
• C) bond prices to fall and interest rates to rise.
• D) bond prices and interest rates to rise.

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Definitions:

Pandemic

An outbreak of a disease that occurs over a wide geographic area and affects an exceptionally high proportion of the population.

Hypoxia

A lack of oxygen.

Pulmonary Fibrosis

A lung disease that occurs when lung tissue becomes damaged and scarred, leading to severe breathing difficulties.

Chronic Pulmonary Histoplasmosis

A long-term fungal infection of the lungs that can mimic tuberculosis, caused by inhaling spores of the fungus Histoplasma capsulatum.