Which Statement Is True

question 104

Multiple Choice

Which statement is true?

• A)The Fed can induce people to buy United States government securities,but it can't induce them to sell.
• B)The Fed can induce people to sell United States government securities,but it can't induce them to buy.
• C)The Fed can induce people to buy and sell United States government securities.
• D)The Fed cannot induce people to buy or sell United States government securities.

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Definitions:

Stock Issuance

The process by which a company distributes new shares to investors, thereby raising capital.

Treasury Shares

Shares that were issued and subsequently reacquired by the issuing corporation, but not retired, reducing the amount of outstanding stock on the open market.

Adjusted Book Value

An asset's book value after accounting for factors like depreciation, amortization, or impairment that affect its original cost.

Primary Beneficiary

The main individual or entity designated to receive the benefits from a will, trust, insurance policy, or financial plan.