?

Macroeconomics

Free Version

Upgrade subject to access all content

Difficult

Operation Twist

MACRO-KVVV4C

In the end of 2012, the Federal Reserve introduced a program that has been referred to as “operation twist”.

What did this program do?

A

Lowered interest rates so low that they became negative.

B

Expanded the money supply by buying mortgage backed securities.

C

Took the money from matured short-term bonds and reinvested them by buying longer-term securities.

D

Provided liquidity to fragile markets through a credit auction.

E

Provided credit directly to consumers, bypassing the banking system that was not granting loans.