If the Treasury Issues an Unusually Large Amount of Bonds

question 6

Multiple Choice

If the Treasury issues an unusually large amount of bonds in the primary market, it places ____ on bond prices and ____ on yields to be earned by investors that purchase bonds and plan to holdthem to maturity.

• A) downward pressure; downward pressure
• B) downward pressure; upward pressure
• C) upward pressure; upward pressure
• D) upward pressure; downward pressure

---

Definitions:

Steroidal Hormones

Steroidal hormones are a class of hormones that are synthesized from cholesterol and include steroids such as estrogen, testosterone, and cortisol, which play critical roles in body functions and development.

Inhibin

A hormone involved in the regulation of the reproductive system, notably in inhibiting the production of follicle-stimulating hormone.

Estrogen

A group of steroid hormones which promote the development and maintenance of female characteristics of the body.

Follistatin

A protein involved in muscle growth, reproduction, and the regulation of certain hormones.