An Open Market Purchase of Government Securities by the Fed

question 101

Multiple Choice

An open market purchase of government securities by the Fed will not tend to result in which of the following, other things being equal?

• A)increased bond prices
• B)a reduced volume of loans issued by the commercial banking system
• C)decreased interest rates
• D)an increase in the price level
• E)an increase in real output

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Definitions:

Supply Chains

Networks of individuals, organizations, resources, activities, and technology involved in the production and sale of a product, from the delivery of source materials from the supplier to the manufacturer, and eventually to the end user.

Manufacturers

Companies or individuals that produce finished goods from raw materials through the use of various tools, equipment, and processes.

Disaster Risk

The potential loss or damage that can occur due to natural or man-made disasters.

Super-Event Probability

An estimation of the likelihood of a composite event, taking into account the probabilities of multiple subordinate events.