How did Operation Twist affect the monetary base?
A) reduced
B) increased
C) no change
D) indeterminate

Name: How did Operation Twist affect the monetary base? A) reduced B) increased C) no change D) indeterminate
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Question

Quizplus · Accepted Answer

Operation Twist, which involved the Federal Reserve buying longer-term securities and selling shorter-term securities, did not directly change the monetary base because it was a swap of assets on the Fed's balance sheet without altering the total amount of reserves in the banking system.

How Did Operation Twist Affect the Monetary Base