1. To correct inflation the fed could use open market operations by buying treasure securities in the secondary market
True or False
2. For bonds issued under a______ arrangement the underwriter attempts to sell the bonds at a specified price but makes no guarantee to the issuer
a. floating value
b. variable proceeds
c. best efforts
d. firm commitment
3. When holding other factors constant increased borrowing by the treasury can result in a _____
Required return and therefore _____ prices on existing bonds
Higher, lower
Higher higher
Lower higher
Lower lower