Question

If the federal reserve sells securities on the open market, how are the purchases of u.s. financial assets by foreigners and the international value of the dollar impacted? financial assets / international value of dollar increase / increase increase / decrease no change / decrease decrease / decrease decrease / increase

Answer 1

If the federal reserve sells securities on the open market, purchases of US financial assets by foreigneres will increase which will increase interest rate and appreciate international value of dollar. So my answer would be : increase / increase