The Reserve Bank of Australia (HSC SSCE Economics): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
ShowHide
Practise the questions
10 questions from this quiz
What is the cash rate?
What is the cash rate?
Interest rate in overnight money market
What are Exchange Settlement (ES) accounts used for?
What are Exchange Settlement (ES) accounts used for?
Settling payments between different banks
What happens in the overnight money market?
What happens in the overnight money market?
Banks with shortages borrow from surpluses
How often does the RBA announce its cash rate target?
How often does the RBA announce its cash rate target?
Monthly (except January)
If the cash rate target is , what is the RBA deposit rate?
If the cash rate target is , what is the RBA deposit rate?
If the cash rate target is , what is the RBA lending rate?
If the cash rate target is , what is the RBA lending rate?
What does the RBA do when demand for ES funds increases?
What does the RBA do when demand for ES funds increases?
Buys securities & deposits funds
Which type of open market operations does the RBA prefer?
Which type of open market operations does the RBA prefer?
Repurchase agreements (repos)
What happens to economic activity when interest rates fall?
What happens to economic activity when interest rates fall?
Consumption & investment rise, activity rises
What is loosening monetary policy?
What is loosening monetary policy?
Lowering rates to stimulate activity