Question
If the US Federal Reserve Bank sells some of its holdings of US Treasury securities to investors, this will put pressure on US interest rates
If the US Federal Reserve Bank sells some of its holdings of US Treasury securities to investors, this will put pressure on US interest rates to
A. fall, because the increased supply of Treasury Bonds will cause the price of the bonds to increase and bond prices and interest rates move in the same direction.
B. fall, because the increased supply of Treasury Bonds will cause the price of the bonds to increase and bond prices and interest rates move in opposite directions.
C. rise, because the increased supply of Treasury Bonds will cause the price of the bonds to decrease and bond prices and interest rates move in opposite directions.
D. rise, because the decreased supply of Treasury Bonds will cause the price of the bonds to increase and bond prices and interest rates move in opposite directions.
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