When the Fed Sells Government Securities on the Open Market

question 58

Multiple Choice

When the Fed sells government securities on the open market

• A) bank reserves decline.
• B) the Fed is following an easy money policy.
• C) government bond prices rise.
• D) bank reserves and interest rates both rise.
• E) interest rates fall.

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Definitions:

Standard of Living

The level of wealth, comfort, material goods, and necessities available to a person, group, or society.

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The need or desire for goods, services, or commodities in foreign markets outside of one's own country.

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