Suppose the Fed Conducts an Open Market Sale

question 25

Multiple Choice

Suppose the Fed conducts an open market sale. We can expect this transaction to

• A) reduce the money supply, increase bond prices, and lower interest rates.
• B) increase the money supply, lower bond prices, and lower interest rates.
• C) increase the money supply, raise bond prices, and lower interest rates.
• D) reduce the money supply, reduce bond prices, and increase interest rates.

---

Definitions:

Fallopian Tubes

Tubes through which eggs travel from the ovaries to the uterus in the female reproductive system.

Genital Warts

A sexually transmitted infection characterized by small, flesh-colored or gray growths in the genital area, caused by certain types of the human papillomavirus (HPV).

Chlamydia

A common sexually transmitted infection caused by the bacterium Chlamydia trachomatis, often asymptomatic but can cause significant health issues if untreated.

Fallopian Tubes

The pair of tubes along which eggs travel from the ovaries to the uterus, and where fertilization of an egg by sperm typically occurs.