Bonds Issued by a Foreign Government in Its Own Currency

question 33

Multiple Choice

Bonds issued by a foreign government in its own currency would:

• A) not be held by the Fed.
• B) be held by the Fed as part of its securities.
• C) be held by the Fed as part of its foreign exchange reserves.
• D) be held by the Fed as part of its loans.

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Definitions:

Political Power

The authority or influence that individuals or groups hold within a political structure.

Sherman Act

An antitrust federal statute passed in 1890 which prohibits certain business activities that reduce competition in the marketplace, including monopolies.

Felony

A serious crime, such as murder, rape, or robbery, that is punishable by imprisonment for more than one year or death.

Restrain Trade

Practices or agreements that restrict free competition in business and commerce.