Author Question: The Open Market Committee oversees the money supply through the Fed's sale and purchase of ... (Read 34 times)

frankwu · **on:** Jun 30, 2018

The Open Market Committee oversees the money supply through the Fed's sale and purchase of government securities.
a. True
b. False
Indicate whether the statement is true or false

Question 2

Suppose a bond sells for 2,000 and pays 200 per year in interest. What will happen to the current interest rate if the price of the bond changes to 1,800?
a. It decreases by 10 percentage points.
b. It increases by 10 percentage points.
c. It remains unchanged.
d. It increases by 1 percentage point.
e. It decreases by 1 percentage point.