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Open Market Operation and Operation twist

  Jan 06, 2021

Open Market Operation and Operation twist

Q. Why is this in news? 

Q. What are Open Market Operations? 

Q. What is Operation twist?

Q. Why is it needed?

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Q. What is History of Operation Twist and how it started?

 In 1961, the John F Kennedy administration proposed a solution to revive the weak economy through lower longer-term interest rates while keeping short-term interest rates unchanged. This initiative is now known as ‘Operation Twist’ which was employed by the US Fed.

Q. What is Yield Curve?