Lets assume the banking system in Europegot into some trouble and banks start making large losses and their solvency risk is increasing.You know that most European banks' assets have a longer duration than their liabilities.Which is the best option for the European Central Bank (ECB) to make banksmore profitable again?

The ECB could buy large amounts oflong-termbonds to steepen the yield curve.

The ECB could buy large amountsof short-term and long-termbonds to steepen the yield curve.

The ECB could sell large amounts of short-term and buylong-termbonds to steepen the yield curve.

The ECB could buy large amounts of short-term and sell some long-termbonds to steepen the yield curve.