QUESTION 3 Derivative securities derive their value from other underlying securities. Unlike other securities we've seen, derivative securities allow for risk-free investment fluctuating interest rates large investment speculation QUESTION 4 If the FOMC believes that increasing inflation is the biggest risk to the U.S. economy, it is likely to suggest that the U.S. Treasury buy securities in order to increase the money in the Fed Reserve attempt to stimulate economic growth to combat inflation expectations enact a restrictive monetary policy decrease interest rates by changing the supply of loanable funds in the market