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Question 9: Under the maturity extension program better known as Operation Twist between September 2011 and the end of 2012 the Federal Reserve purchased about

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Question 9: Under the maturity extension program better known as "Operation Twist" between September 2011 and the end of 2012 the Federal Reserve purchased about $700 billion of longer-term Treasury securities and sold or allowed to run off an equal amount of shorter-term Treasury securities. This policy aimed to: a. Put upward pressure on shorter-term bond prices and therefore lower their yields. b. Put upward pressure on prices of financial assets (e. g. corporate bonds, mortgage- backed securities) that investors consider to be close substitutes for longer-term Treasury securities. Put downward pressure on longer-term bond prices and therefore raise their yields. All of the above answers None of the above answers. {DP-5"

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