8th January 2020 | Prelims Daily with Previous Year Questions

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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.

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2 years ago

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

abhijeet singh rathore
abhijeet singh rathore
2 years ago

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
Ishita Trivedi
2 years ago

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
2 years ago
Reply to  Ishita Trivedi

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