When Bond Traders for the Federal Reserve Seek to Decrease

question 143

Multiple Choice

When bond traders for the Federal Reserve seek to decrease interest rates, they ______ bonds, which shifts the ______ curve to the right.

• A) buy; IS
• B) buy; LM
• C) sell; IS
• D) sell; LM

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Definitions:

Ending Inventory

Ending inventory is the total value of all products, raw materials, and finished goods that are not sold at the end of an accounting period.

LIFO Perpetual

An inventory valuation method where the last items added to inventory are assumed to be the first sold, updated continuously throughout the accounting period.

Cost of Goods Sold

The direct costs attributable to the production of goods sold by a company.

FIFO Perpetual

A method of inventory valuation where goods are recorded and sold based on the order they were received, continually updating the inventory ledger.