# Civics

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 Reserve 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.

1. 👍 0
2. 👎 0
3. 👁 323
1. I suppose that's the best answer from the choices given. I can think of better ones, but they aren't among your choices.

1. 👍 0
2. 👎 0
posted by Reed
2. D in not correct, They will not raise their interest rates just to encourage Pedro to deposit money there.

1. 👍 1
2. 👎 1
3. Die

1. 👍 1
2. 👎 2
posted by Die

## Similar Questions

1. ### Social studies

What is a major risk of using a financial institution? A. The financial institution may fail entirely. B. Financial institutions may choose not to pay investors back C. Investors can be unable to withdraw money when they need it

asked by BlurryFace on March 16, 2017

Ms. Christine, the owner of Gogo Company approaches you for raising the capital through acquiring a loan from a financial institution. Mention to her the document required for inviting the attention of the financial institution.

asked by PAULUS JOHANNES on May 20, 2016
3. ### algebra

A student has a number of \$40 and \$ 80 savings bonds to use for part otf their college expence.The total value of bonds is \$1160.There are 5 more \$40 bonds than \$80 bonds.How many of each type of bonds she have?

asked by Anonymous on June 14, 2012

Her are the data on \$1000 par value bonds issued by Microsoft, Ford, and Xerox at the end of 2008, Assume you are thinking about buying these bonds as of January 2009. Answer the following questions. a. Calculate the values of the

asked by Chris on June 7, 2012
5. ### Math

Pedro has two options: he can enter raffle number 1, OR raffle number 2 along with raffle number 3. If Pedro chooses to enter raffle number 1, he can buy up to 100 raffle tickets. Each ticket has a 1 in 50 chance of getting

asked by Lillian on August 5, 2013
6. ### Math 201 ( Algebra)

A student has a number of \$40 dollar and \$80 dollar savings bonds to use for part of her expenses for college. The total value of the bonds is \$1000. There are 7 more \$40 bonds than \$80 bonds. How many of each type of bond does

asked by Jeff Scott on November 10, 2014
7. ### history.................im back

9.all were war efforts on the home front during world war 1 EXCEPT a)giving to the red cross. b)rationing food C)flying combat missions**** d) buying liberty bonds,victory bonds, and war savings stamps 10.the struggle for equality

asked by coolguy321 on March 3, 2016
8. ### finance

Here are data on \$1,000 par value bonds issued by Microsoft, Ford, and Xerox at the end of 2008. Assume you are thinking about buying these bonds as of January 2009. Answer the following questions: a.) Calculate the values of the

asked by Yatie on August 28, 2015
9. ### SOC

a social institution like health care, how to Compare and contrast on how the theoretical perspectives view the institution of healthcare. Then how does this way of thinking affect the people who are in or part of healthcare?

asked by chris allen on January 20, 2010
10. ### math

At the beginning of every year, a man deposited \$ 10,000 in a financial institution which paid compound interest at the rate of 20% p.a. He stopped further deposits after three years. The Money remained invested in the financial

asked by kudu please check is it corret? on February 6, 2015

More Similar Questions