The Fed Engages in Open Market Operations and Sells Government

question 345

Multiple Choice

The Fed engages in open market operations and sells government securities. The result is

• A) lower interest rates.
• B) higher interest rates.
• C) interest rates remain unchanged since there is no reason to think bond prices changed.
• D) uncertain since more information is needed.

---

Definitions:

Courts

Judicial systems responsible for interpreting and applying the law in legal cases.

Utility Patent

is a legal document that grants exclusive rights to an inventor for a new, useful, and non-obvious process, machine, manufacture, or composition of matter.

Prototype

An early sample, model, or release of a product built to test a concept or process.

Modified Wings

Alterations made to the wing design of an aircraft to improve performance, efficiency, or to meet specific requirements.