28. Which of the following statements is correct? A. When the global sector purc

Question

28. Which of the following statements is correct? A. When the global sector purchases Treasury bills, those purchases help to mitigate the interest rate effect of Treasury buying. B. When foreign buyers, either private or public, purchase U.S. Treasuries they enter on the selling side of the bond market. C. When foreign buyers, either private or public, purchase U.S. Treasuries, demand increases and this puts downward pressure on bond prices and in turn downward pressure on interest rates. D. When foreign buyers, either private or public, purchase U.S. Treasuries demand increases and this puts downward pressure on bond prices and in turn upward pressure on interest rates. E. When the global sector purchases Treasury bills, those purchases help to mitigate the interest rate effect of Treasury selling.

Explanation / Answer

D. When foreign buyers, either private or public, purchase U.S. Treasuries demand increases and this puts downward pressure on bond prices and in turn upward pressure on interest rates.

This is true.

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