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

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Definitions:

Hang-gliding

A recreational activity or sport where a person flies a light, non-motorized aircraft which is launched by leaping from a height.

Responsible

Being accountable or answerable for something within one’s power, control, or management.

Title Search

The process of examining public records to verify the legal ownership of property and determine if there are any claims or liens against it.

Standard of Care

The level of carefulness and caution expected from someone who has a responsibility to act carefully.