When the Fed buys short-term Treasury securities,short-term interest rates:
A) fall.
B) rise.
C) could rise or fall.
D) stay the same.

Name: When the Fed buys short-term Treasury securities,short-term interest rates: A) fall. B) rise. C) could rise or fall. D) stay the same.
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Question

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When the Fed buys short-term Treasury securities, it increases the demand for these securities, which drives up their prices and pushes down their yields. This, in turn, brings down short-term interest rates.

When the Fed Buys Short-Term Treasury Securities,short-Term Interest Rates