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13. An important way in which the Federal Reserve has conducted monetary policy is by selling bonds in the open market. Describe what effect

13. An important way in which the Federal Reserve has conducted monetary policy is by selling bonds in the open market. Describe what effect this action has on interest rates. In your description, discuss how supply/demand for reserves will be impacted by the open market sale. 14. Calculate the future value in five years of $1,000 invested today if you earn: a. 6% compounded annually b. 6% APR compounded semiannually c. 6% APR compounded quarterly (6 points)

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