Reserve Bank Intervention in the Foreign Exchange Market (HSC SSCE Economics): Quizzes
📚Quizzes
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10 questions from this quiz
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Practise the questions
10 questions from this quiz
What type of exchange rate system does Australia operate?
What type of exchange rate system does Australia operate?
Floating exchange rate system
What are the two main RBA intervention strategies in the foreign exchange market?
What are the two main RBA intervention strategies in the foreign exchange market?
Direct & indirect intervention
What does 'dirtying the float' refer to?
What does 'dirtying the float' refer to?
RBA buying/selling A$ in forex market
What does the RBA do to prevent rapid depreciation of the Australian dollar?
What does the RBA do to prevent rapid depreciation of the Australian dollar?
Purchases Australian dollars
What does the RBA do to prevent rapid appreciation of the Australian dollar?
What does the RBA do to prevent rapid appreciation of the Australian dollar?
Sells Australian dollars
How much did the RBA purchase during the 2007-08 global financial crisis intervention?
How much did the RBA purchase during the 2007-08 global financial crisis intervention?
$3.3 billion worth
What is the main limitation of the RBA's direct intervention capacity?
What is the main limitation of the RBA's direct intervention capacity?
Reserves < one day's forex turnover
How does raising interest rates help curb currency depreciation?
How does raising interest rates help curb currency depreciation?
Attracts foreign capital inflows
According to 2014 RBA research, what inflation increase does a 10% depreciation cause over two years?
According to 2014 RBA research, what inflation increase does a 10% depreciation cause over two years?
0.25% to 0.5% increase
What is the primary target of RBA monetary policy?
What is the primary target of RBA monetary policy?
Inflation control