If the Fed Buys More Bonds from the Public, and Increases

question 136

Multiple Choice

If the Fed buys more bonds from the public, and increases the price it is willing to pay for the bonds, what will happen to interest rates?

• A)They will rise.
• B)They will fall.
• C)They will remain unchanged.
• D)The relationship between bond prices and interest rates is unclear.

---

Definitions:

Vehicle Repossession

The process where a financial institution or lienholder takes back possession of a vehicle due to non-payment of the loan.

Job Satisfaction

The level of contentment a person feels with regard to their job, which can affect their productivity and overall well-being.

Job Burnout

A state of physical, emotional, and mental exhaustion caused by prolonged stress and dissatisfaction in the workplace.

Realistic Goal

An achievable and practical objective that an individual or organization aims to reach within a specific timeframe.