The Reserve Bank of Australia: Select one: A. Implements monetary policy B. Implements fiscal policy C....
The Reserve Bank of Australia: Select one: A. Implements monetary policy B. Implements fiscal policy C. Is lender of last resort to large troubled companies in Australia D. All of the above
Homework Answers
Answer is A. Implements monetary policy
Reserve Bank of Australia or Central Bank of any country is responsible to maintain the monetary policy of the country. This implies it manages the policy rate and hence inflation rate. Fiscal policy is maintained by the government of that country which includes investments, taxation, etc.
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The Reserve Bank of Australia: Select one: A. Implements
monetary policy B. Implements fiscal policy C....
What is the primary aim of the Reserve Bank of Australia's development and implementation of monetary...
What is the primary aim of the Reserve Bank of Australia's development and implementation of monetary policy? A. To achieve an inflation rate of zero B. To achieve low and stable inflation C. To be the lender of last resort to failing companies D. To stabilise the financial system
2.9 If the Reserve Bank of Australia increased the overnight cash rate, what accompanying fiscal policy...
2.9 If the Reserve Bank of Australia increased the overnight cash rate, what accompanying fiscal policy do you think would be appropriate?
1. Which of the following institution implements monetary policies in China? Select one: A. Bank of...
1. Which of the following institution implements monetary policies in China? Select one: A. Bank of China B. People’s Bank of China C. Agriculture Bank of China D. The Industrial and Commercial Bank of China 2. Under the linked exchange rate system, which of the following(s) in Hong Kong will change in line with that of US’s? Select one: A. Inflation rate B. Money supply C. Interest rate D. All of the above 3.A spot transaction in the foreign exchange...
What is a monetary policy inflation target, and what is the specific target for Australia used...
What is a monetary policy inflation target, and what is the specific target for Australia used by the Reserve Bank of Australia? Discuss one advantage and one disadvantage of inflation targeting, and briefly provide for an example for each.
Assume that the Board of the Reserve Bank of Australia decides to decrease the cash rate by 25 basis points to 1.25 per...
Assume that the Board of the Reserve Bank of Australia decides to decrease the cash rate by 25 basis points to 1.25 per cent. (a) Describe the monetary policy objectives of the Reserve Bank of Australia (2 marks) (b) Using diagrams (market for bank reserves, loanable funds and AD/AS diagrams), explain how a decrease in cash rate might affect real GDP. (3 marks) (c) Discuss the circumstances that would have led to a decrease in cash rate. What circumstances make...
The Reserve Bank of Australia manages the supply of cash on a daily basis to: ensure...
The Reserve Bank of Australia manages the supply of cash on a daily basis to: ensure that every bank has sufficient cash to meet the demand for funds sterilise deficits and surpluses of cash in the financial system ensure that there are no large injections of cash into or withdrawals of cash out of the financial system ensure that the interest rate changes to create equilibrium in the money market. If the Reserve Bank of Australia sells bonds and securities...
Suppose the Bank of Canada implements monetary policy which results in an immediate increase in aggregate...
Suppose the Bank of Canada implements monetary policy which results in an immediate increase in aggregate demand of $12 Billion. If the spending multipler is 1.5 what would be the ultimate effect of this monetary policy on total economic output? a) it would rise by $1.5 billion b) it would fall by $12 billion c) it would rise by $18 billion d) no change e)it would fall by $18 billion
The terms refer to tools of monetary policy. Match each with its corresponding description. Two of...
The terms refer to tools of monetary policy. Match each with its corresponding description. Two of the descriptions do not correspond with any of these terms. The central bank prints additional money at a higher rate. Answer Bank the reserve ratio The Federal Reserve Bank increases the share of total deposits that banks can legally loan the term auction facility The European Central Bank purchases bonds from commercial banks. open market operations the discount rate The central bank decreases the...
The Reserve Bank of Australia (RBA) purchases government bonds from an Australian bank. This transaction the...
The Reserve Bank of Australia (RBA) purchases government bonds from an Australian bank. This transaction the monetary base and __ the money supply. (a) increases; increases (b) decreases; decreases decreases; leaves unchanged (d) increases; leaves unchanged (c)
1. Central bank responsibilities do not include: a. Providing mortgages to consumers b. Acting as the...
1. Central bank responsibilities do not include: a. Providing mortgages to consumers b. Acting as the government's bank or fiscal agent c. Setting monetary policy d. Acting as a lender of last resort (emergency lending) 2. A governor on the Board of Governors is nominated by: a. The Chair of the Fed b. The Senate Banking Committee c. Regional Fed Presidents d. The President of the United States 3. There is a regional Federal Reserve Bank in each of the...
2.9 If the Reserve Bank of Australia increased the overnight cash rate, what accompanying fiscal policy do you think would be appropriate?
The Reserve Bank of Australia manages the supply of cash on a daily basis to: ensure that every bank has sufficient cash to meet the demand for funds sterilise deficits and surpluses of cash in the financial system ensure that there are no large injections of cash into or withdrawals of cash out of the financial system ensure that the interest rate changes to create equilibrium in the money market. If the Reserve Bank of Australia sells bonds and securities...
The terms refer to tools of monetary policy. Match each with its corresponding description. Two of the descriptions do not correspond with any of these terms. The central bank prints additional money at a higher rate. Answer Bank the reserve ratio The Federal Reserve Bank increases the share of total deposits that banks can legally loan the term auction facility The European Central Bank purchases bonds from commercial banks. open market operations the discount rate The central bank decreases the...
The Reserve Bank of Australia (RBA) purchases government bonds from an Australian bank. This transaction the monetary base and __ the money supply. (a) increases; increases (b) decreases; decreases decreases; leaves unchanged (d) increases; leaves unchanged (c)
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