If people are holding more money than they would willingly hold, they will _ bonds. The price of a bond will and the interest rate will .
A) sell; rise; fall
B) sell; fall; rise
C) purchase; fall; rise
D) purchase; rise; fall

Question

Quizplus · Accepted Answer

If people are holding more money than they want, they will purchase bonds to reduce their cash holdings. This increased demand for bonds will cause bond prices to rise and interest rates to fall.

If People Are Holding More Money Than They Would Willingly