By Purchasing Large Amounts of Mortgage-Backed Securities (MBS) in 2009

question 23

Multiple Choice

By purchasing large amounts of mortgage-backed securities (MBS) in 2009, the Federal Reserve's goal was to

• A)raise the price of MBS and raise their yields.
• B)raise the price of MBS and lower their yields.
• C)lower the price of MBS and raise their yields.
• D)lower the price of MBS and lower their yields.

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Definitions:

Market Baskets

A set of consumer products or services used to track price changes and inflation over time.

GDP Per Capita

A measure of a country's economic output that accounts for its number of people, providing an average economic well-being indicator.

Happiness

A state of well-being and contentment, often considered as an aim of human life.

Satisfaction

The fulfillment of one's wishes, expectations, or needs, or the pleasure derived from this.