Answer: increase: sell bonds and buy short term securities --A
Explanation:
When investors anticipate higher interest rates , they sell Thier bonds than allow it to mature because they understand that the value of bonds in the market lies largely on the coupon rates of other bonds making market prices of old bonds with lower coupons to decrease allowing new buyers for their lower interest payments.
They also sell Thier bonds if The Issuing Entity becomes unstable financial-wise because it prevent Thier chances of profit in the future and they would not like to recover only part of their investment.
When they sell Thier bonds due to anticipated increased rates, they buy short term securities that would be more beneficial to them.
