An Open-Market Purchase of T-Bonds by the Fed Causes the Money

question 27

Multiple Choice

An open-market purchase of T-bonds by the Fed causes the money supply to

• A)fall and bond prices to fall.
• B)rise and bond prices to fall.
• C)rise and bond prices to rise.
• D)fall and bond prices to rise.

---

Definitions:

Continental Rifting

The process by which a continent stretches and splits along a rift zone, forming a new ocean basin.

Decompression Melting

A process where melting occurs due to a decrease in pressure as rock rises closer to the Earth's surface without a significant increase in temperature.

Subduction

The process by which one tectonic plate moves under another plate and is forced into the mantle.

Decompression Melting

The process by which melting occurs in the mantle due to a decrease in pressure as rocks ascend towards the surface.