In the "operation twist" strategy used in 2011 and 2012, the Fed sold _______ Treasury securities and used the proceeds to purchase ________ Treasury securities.
A) long-term; short-term
B) short-term; long-term
C) short-term; long-term.
D) long-term; short-term.

Question

Quizplus · Accepted Answer

Operation Twist involved the Federal Reserve selling short-term Treasury securities and using the proceeds to purchase long-term Treasury securities to lower long-term interest rates and stimulate the economy.

In the "Operation Twist" Strategy Used in 2011 and 2012