If the Fed Sells Bonds Through Its Open Market Operations

question 284

Multiple Choice

If the Fed sells bonds through its open market operations, then there is

• A) an increase in the demand for bonds and a rise in the price of existing bonds.
• B) an increase in the supply of bonds and a fall in the price of existing bonds.
• C) a decrease in interest rates because of the increase in the supply of bonds.
• D) a decrease in interest rates because of the decrease in the demand for bonds.

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Definitions:

Ethical Behavior

Conduct that is in accordance with what is considered morally right or acceptable in a society, profession, or industry.

Business Ethics

Principles and standards that guide behavior in the world of business, addressing issues like corporate governance, insider trading, bribery, discrimination, and social responsibility.

Anne Mulcahy

Former CEO of Xerox Corporation, known for her role in the company's turnaround and her leadership qualities.

Xerox

A multinational corporation known for its photocopiers and printing technology, often used synonymously with photocopying.