If the Fed Sells Securities on the Open Market,bond Prices

question 171

Short Answer

If the Fed sells securities on the open market,bond prices will tend to ____ and interest rates will tend to ____.

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Definitions:

Commercial Banks

Financial institutions that accept deposits, offer various loans, and provide other financial services, like wealth management and currency exchange.

Savings And Loan

Financial institutions that primarily engage in accepting savings deposits and making mortgage loans.

Reserve Requirements

Criteria set by central banks for the minimal amount of reserves that must be kept by banks against the deposits they hold.

Interest Rate

The percentage of a sum of money charged for its use, typically expressed as an annual percentage rate.