If the Fed Initiates a Program to Purchase Long-Term Treasury

question 3

Multiple Choice

If the Fed initiates a program to purchase long-term Treasury securities, it is most likely attempting to

• A)reduce the rate on short-term Treasury securities.
• B)reduce the rate on commercial paper.
• C)reduce inflation.
• D)reduce long-term interest rates.

---

Definitions:

Nurturing

Providing support, care, and encouragement to help someone grow, develop, or succeed.

Cold and Distant

Describing someone as cold and distant means they are emotionally unresponsive, unfriendly, and tend to keep others at a distance.

Punishment

The process by which a behavior is weakened, decreasing the likelihood of repetition.

Permissive

A parenting or authoritative style characterized by low demands with high responsiveness.