If the Fed Wants to Raise the Federal Funds Rate

question 28

Multiple Choice

If the Fed wants to raise the federal funds rate, it will _____ bonds, which _____ bond prices.

• A) sell; lowers
• B) sell; raises
• C) buy; lowers
• D) buy; raises

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Definitions:

Hair Length

The measure of length of hair strands from their root to tip.

Automobile

A wheeled motor vehicle used for transportation, typically powered by an internal combustion engine or electric motor.

Correlation Coefficients

A statistical measure that indicates the extent to which two or more variables fluctuate together, ranging from -1 to 1 where 1 means a perfect positive correlation and -1 means a perfect negative correlation.

Accurate Predictions

Forecasts or guesses that accurately match or describe future outcomes or events based on available data or analysis.