Asked by Alyssa Currie on Jun 15, 2024

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If the Fed sells securities on the open market,bond prices will tend to ____ and interest rates will tend to ____.

Securities

Financial instruments that represent an ownership position in publicly-traded corporations (stocks), a creditor relationship with a governmental body or a corporation (bonds), or rights to ownership as represented by an option.

Bond Prices

are the market value of bonds, which inversely correlate with interest rates; when rates go up, bond prices typically go down, and vice versa.

Interest Rates

The proportion of a total amount of money that is levied for its utilization, typically stated on a yearly basis.

  • Analyze the effects of open market operations on bond prices and interest rates.
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KC
KELLIE CLOUTIERJun 21, 2024
Final Answer :
fall;rise