If the Federal Reserve Sells $50 Billion of Short-Term U

question 65

Multiple Choice

If the Federal Reserve sells $50 billion of short-term U.S. Treasury securities to the public, other things held constant, what will this tend to do to short-term security prices and interest rates?

• A)Prices and interest rates will both rise.
• B)Prices will rise and interest rates will decline.
• C)Prices and interest rates will both decline.
• D)Prices will decline and interest rates will rise.
• E)There will be no changes in either prices or interest rates.

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Definitions:

Emic Approach

A research approach that focuses on understanding cultural phenomena from the perspective of the insider or native view.

Youth Market

A segment of the market consisting of young consumers, typically targeted by brands and marketers for products and services that appeal to younger demographics.

Back-Translation

A method used in the translation process where a text is translated from one language to another and then translated back to the original language to check for accuracy.

Etic Perspective

An approach to studying human behavior from a position outside of the culture being studied, emphasizing universal aspects.