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If the Trading Desk Is Instructed to Increase the Federal

Question 8

Multiple Choice

If the Trading Desk is instructed to increase the federal funds rate, its traders _________ securities dealers, and those dealers' bank account balances are __________.


A) sell Treasury securities to; reduced
B) sell Treasury securities to; increased
C) buy Treasury securities from; reduced
D) buy Treasury securities from; increased

Correct Answer:

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