A Sale of Bonds by the Fed Generates

question 53

Multiple Choice

A sale of bonds by the Fed generates

• A) an increase in the demand for money balances.
• B) a decrease in the demand for money balances.
• C) an increase in the demand for bonds and a rise in bond prices.
• D) an increase in the supply of bonds and a fall in bond prices.

---

Definitions:

Town Elementary Schools

Public primary schools typically found in urban settings, focused on providing basic education in reading, writing, and arithmetic.

Virtuous Role Model

A person or character who exemplifies positive, ethical behaviors and qualities, serving as an example for others to emulate.

Letters of a Federal Farmer

A series of essays written in the late 18th century arguing for the Bill of Rights' inclusion in the U.S. Constitution.