8th January 2020 | Prelims Daily with Previous Year Questions

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5 responses to “8th January 2020 | Prelims Daily with Previous Year Questions”

1. 

   January 9, 2020

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

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2. 

   January 9, 2020

   abhijeet singh rathore

   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?

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   1. 

      January 9, 2020

      Nitesh Gughane

      Hi Abhijeet… Securities maturing in short-term were sold.
   2. 

      January 10, 2020

      Ishita Trivedi

      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
   3. 

      January 10, 2020

      Parth Verma

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