An Open-Market Sale

question 49

Multiple Choice

An open-market sale

• A)increases the number of dollars and the number of bonds in the hands of the public.
• B)increases the number of dollars in the hands of the public and decreases the number of bonds in the hands of the public.
• C)decreases the number of dollars and the number of bonds in the hands of the public.
• D)decreases the number of dollars in the hands of the public and increases the number of bonds in the hands of the public.

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Definitions:

Accounting

The systematic process of recording, measuring, and communicating information about financial transactions.

Risk

The exposure to uncertainty or potential financial loss in decision-making and investment.

Return

The profit or loss derived from an investment or business operation after all expenses are accounted for.

Investor

An individual or institution that allocates capital with the expectation of receiving financial returns, involving various forms of assets.