18. to correct inflation the fed could use open market operations by buying trea

Question

18. to correct inflation the fed could use open market operations by buying treasure securities in the secondary market

TrUE or False

25. for bonds issued under a______ arrangement the underwriter attempts to sell the bonds at a specified price but makes no guarantee to the issuer

a. floating value

b. variable proceeds

c. best efforts

d. firm commitment

30. when holding other factors constant increased borrowing by the treasury can result in a _____

Required return and therefore _____ prices on existing bonds

Higher, lower

Higher higher

Lower higher

Lower lower

Explanation / Answer

18) False.

25) Best efforts.

30) Higher Higher.

I hope my solution solves your query.

Regards.

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