Answer:
Financial Assets / International Value of Dollar both decrease
Step-by-step explanation:
Open market operations are carried out by the government to control supply of money in the economy.
When there is to be a reduction in money supply a government can sell bonds thereby mopping up the cash in the economy.
On the other hand when they want to increase money supply bonds are bought and cash injected into the economy.
In the given scenario the Federal Reserve buys bonds on the open market. This will cause a decrease in purchase of financial assets by foreigners because bonds are no longer available. They have been purchased by the government.
Buying of bonds by the Fed will also increase money supply. There will be excess supply over demand.
This will tend to reduce the value of the dollar.