Final answer:
An open market purchase increases the money supply, leading to a decrease in interest rates due to a rise in the supply of loanable funds. This also corresponds to an increase in the quantity of loans made and received when there is a rise in demand and supply in the financial market.
Step-by-step explanation:
The changes in the money supply brought about by an open market purchase, such as through the actions of a central bank like the Federal Reserve, can have various effects on the financial market. An open market purchase usually results in an increase in the money supply because the central bank is buying securities, thus injecting money into the economy. This leads to a decrease in interest rates because there is more money available to be lent, which increases the supply of loanable funds. Conversely, a decrease in interest rates can occur when there is a rise in supply of money in the financial market. As for the quantity of loans made and received, an increase would typically result from both a rise in demand for loans and a rise in supply of loanable funds.