8th January 2020 | Prelims Daily with Previous Year Questions

Dear students,

1. In the comments section, share your score and also let everyone know the logic you’ve used to mark certain answers. This will trigger intelligent discussions benefitting everyone.

2. Completing the test should be your top priority. Focus on accuracy rather than simply attempting more questions. Give enough thought to each question, we have increased the time limit so you can do this.

3. At the end of the test, click on ‘View Questions’ button to check the solutions.

*You can attempt the test multiple times for your own practice but only your first attempt will be counted for rankings.

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Parth VermaIshita TrivediNitesh Gughaneabhijeet singh rathorevikas6779 Recent comment authors
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vikas6779
Guest

Can you please elaborate more on buying and selling of short term and long term securities through Operation Twist?

abhijeet singh rathore
Member

i have a doubt on q.4 . can somebody please elaborate.
statement 2 : It is carried out to bring down long term interest rate by selling the security maturing in the long term which in turn bring down the interest rate in that period.
statement 3 : RBI has sold securities maturing in the short term and bought securities maturing in the long term.
so, which is it, long term securities were sold or short term?

Ishita Trivedi
Guest

Statement 2 is wrong in their explanation.
Buy long term sec–> Prices of sec goes up–> Yield/interest rate comes down–> encourages investment in long gestation projects

Parth Verma
Editor

You are right Ishita. There was a mistake in the explanation of the statement 2. It has been corrected now.