If the Federal Reserve Sells $50 Billion of Short-Term U

question 65

Multiple Choice

If the Federal Reserve sells $50 billion of short-term U.S. Treasury securities to the public, other things held constant, what will this tend to do to short-term security prices and interest rates?

• A)Prices and interest rates will both rise.
• B)Prices will rise and interest rates will decline.
• C)Prices and interest rates will both decline.
• D)Prices will decline and interest rates will rise.
• E)There will be no changes in either prices or interest rates.

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Definitions:

Praise Employees

The action of expressing approval or admiration for an employee's work or achievements, often used as a motivational tool.

Public Recognition

Acknowledging an individual's achievements in a public manner, often used in workplaces to motivate employees and reinforce desired behaviors.

Salary Increase

The act of raising an employee's base pay to reflect performance, market conditions, or increases in living costs.

Positive Energy

A concept referring to a beneficial force or vibe emanating from someone or something that positively affects the environment and people around them.