Suppose the U. S. Treasury issued $50 billion of short-term securities and sold them to the public. Other things held constant, what would be the most likely effect on short-term securities' prices and interest rates?A. Prices and interest rates would both rise.
B. Prices would rise and interest rates would decline.
C. Prices and interest rates would both decline.
D. Prices would decline and interest rates would rise.
E. There is no reason to expect a change in either prices or interest rates.

Capital financial corporation will lend 90 percent against account balances that have averaged 30 days or less; 80 percent for account balances between 31 and 40 days; and 70 percent for account balances between 41 and 45 days. customers that take over 45 days to pay their bills are not considered acceptable accounts for a loan. the current prime rate is 16.50 percent, and capital charges 3.50 percent over prime to charming as its annual loan rate. a. determine the maximum loan for which charming paper company could qualify.