Economics · Monetary Policy Tools
In central banking operations, 'Operation Twist' primarily refers to:
- 1Direct purchase of physical gold from international markets to bolster reserves
- 2A sharp upward adjustment of the Cash Reserve Ratio to squeeze liquidity
- 3Simultaneous buying of long-term government securities and selling of short-term government securities✓
- 4Simultaneous intervention in the spot and forward foreign exchange markets
Correct answer
Simultaneous buying of long-term government securities and selling of short-term government securities
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