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:

Work Motivation

The set of internal and external forces that influence an individual's level of interest and commitment to perform their job effectively.

Job Simplification

The process of breaking down a job into its simplest components and removing complex or unnecessary tasks to increase efficiency.

Operating Efficiency

A measure of the effectiveness with which an organization uses its resources to produce goods or services.

Permanent Part-Time Work

Refers to employment positions that are not full-time but still offer a consistent, ongoing work schedule.