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13. A purchase of Treasury securities by the Fed leads to a(n) level of business investment. in interest rates and a(n) in the a. increase; decrease b. decrease; decrease c. increase; increase d. decrease; increase 14. Which of the following is a goal the Federal Reserve? a. Maintain stable employment b. Monitor long -term interest rates c. Maintain stable prices d. All are goals of the Federal Reserve 15. Securities with maturities of one year or less are classified as a. capital market instruments b. money market instruments c. preferred stock d. none of the above 16. T-bills maturing in one-year or less are sold a. with interest payments at specified times. b. at a discount from par value. c. at a premium about par value. d. all the above 17. The federal funds market allows depository institutions to borrow a. short-term funds from each other. b. short-term funds from the Treasury. c. long-term funds from each other. d. long-term funds from the Federal Reserve. 18. The rate at which depository institutions effectively lend or borrow funds from each other is the a. federal funds rate b. discount rate c. prime rate d. repo rate 19. Treasury bills a. have a maturity of up to five years. b. have an active secondary market. c. are commonly sold at par value. d. commonly offer coupon payments