Question

Selling short-term treasury bills and buying longer-term treasury bonds without creating more new money is called: Multiple Choice standard monetary policy. precommitment policy. quantitative easing. operation twist.

Answer 1

operation twist.

Step-by-step explanation:

The operation twist refers to the transactions in which it includes the buying and sale of government securities to raise up the economy so that the long term rate of interest could be fall

Therefore in the situation, it is mentioned that by selling off the short term treasury bills and in exchange long term bond are purchased so this represents the operation twist

Hence, the last option is correct