During World War II,whenever Interest Rates Would Rise and the Price

question 47

Multiple Choice

During World War II,whenever interest rates would rise and the price of bonds would begin to fall,the Fed would

• A)lower reserve requirements.
• B)raise reserve requirements.
• C)make open market purchases of government securities.
• D)make open market sales of government securities.

---

Definitions:

General Public

Refers to the aggregate of individuals in society who are not actively involved in the planning or execution of business, governmental, or professional activities.

Economic Growth

An increase in the production of goods and services in an economy over a certain period, indicating the health of the country's economy.

Interest Rates

The cost of borrowing money expressed as a percentage of the total amount loaned, or the reward for saving and lending money.

Conditions

The specific requirements, provisions, or stipulations that define the terms under which agreements or contracts are established and operated.