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:

Profits Decrease

The reduction in earnings, often due to increased costs, lower sales, or unfavorable market conditions.

Quick Response

A strategy focused on reducing lead times across the supply chain to respond swiftly to consumer demand and market changes.

Product Differentiation

The process of distinguishing a product or service from others in the market to make it more attractive to a particular target market.

Multiple Products

The strategic offering of a variety of products by a business to meet diverse customer needs, expand market reach, and reduce risk.