Pedro is thinking about buying U. S savings bonds. However, there is a financial institution controlled by the government that may actively discourage Pedro from buying bonds. How and why would such a financial institution do this?

A) Stocks on Wall Street may be doing quite well, encouraging Pedro to invest there instead of buying securities.

B) The U. S Treasury might refuse to sell securities to Pedro because it does not have any bonds to sell.

C) The Federal Reverse could raise the price of securities, to encourage Pedro to buy other things instead.

D) Banks might raise their interest rates, encouraging Pedro to deposit his money there instead of buying securities.

Question

Cristopher Mcgee

History

7 May, 07:58

Pedro is thinking about buying U. S savings bonds. However, there is a financial institution controlled by the government that may actively discourage Pedro from buying bonds. How and why would such a financial institution do this?

A) Stocks on Wall Street may be doing quite well, encouraging Pedro to invest there instead of buying securities.

B) The U. S Treasury might refuse to sell securities to Pedro because it does not have any bonds to sell.

C) The Federal Reverse could raise the price of securities, to encourage Pedro to buy other things instead.

D) Banks might raise their interest rates, encouraging Pedro to deposit his money there instead of buying securities.

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Answers (1)

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Andrew Huynh · Answer 1

The right answer for the question that is being asked and shown above is that: "A) Stocks on Wall Street may be doing quite well, encouraging Pedro to invest there instead of buying securities." Pedro is thinking about buying U. S savings bonds. However, there is a financial institution controlled by the government that may actively discourage Pedro from buying bonds.