Homework Question.on interest rates & securities.please help!!!?

Question

If the Federal Reserve sells $50 billion of short-term U.S. Treasury securities to the public, other things held constant, what would be the most likely effect on short-term securities prices and interest rates?

-Prices and interest rates will both rise.

-Prices will rise and interest rates will decline.

-Prices and interest rates will both decline.

-Prices will decline and interest rates will rise.

-There is no reason to expect a change in either prices or interest rates.

Answer 1

1) Supply of securities will increase - It will lower securities price (also debt will increase so trust will be reduced).

2) Money supply will fall - it will  reduce resources available for investmet thus increasing interest rate.

Answ: -Prices will decline and interest rates will rise.