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WorksheetsMonetary Policy
Total questions: 15
Worksheet time: 8mins
Which organisation conducts monetary policy?
Reserve Bank of Australia
APRA
RCA
ASIC
Tightening of monetary policy involves
decreasing the cash rate
increasing the cash rate
Easing monetary policy involves
decreasing the cash rate
increasing the cash rate
The RBA announces the monetary policy decision on
The first Tuesday of each week at 2:30pm
The First Tuesday of each month at 2:30pm
The First Tuesday of each month at 5pm
The first Tuesday of each week at 5pm
Which of the following laws govern the RBA
The Reserve Act 1959
The Australian Monetary Fund 1961
The Australian Monetary Fund 1964
The Reserve Bank Act 1959
Which of the following is NOT an objective of monetary policy
Inflation between 2-3%
Full employment
Equal distribution of income
Economic prosperity
CGS stands for
Commonwealth Government Spending
Commonwealth Government Securities
Commonwealth Government Stability
Commonwealth Government Stance
To increase money supply the RBA will
Sell CGS to banks
Buy CGS from banks
Buy CGS from the government
Sell CGS to the government
DMO refers to the purchase and sale of financial securities by the RBA in exchange for ES balances (cash).
True
False
ES stands for
Exchange Securities
Exchange Stocks
Exchange Settlements
The policy interest rate corridor is defined
as the cash rate target
as a floor and a ceiling around the cash rate target in the Australian cash market.
a price floor on the cash rate target in the Australian cash market.
a price ceiling on the cash rate target in the Australian cash market.
The current RBA cash rate as of August 2022 is
0.10%
1.35%
1.85%
1.50%
The current inflation rate as at August 2022 is
5.1%
6.1%
2%
3%
The RBA target inflation rate is between
3-4%
2-3%
5-6%
4-5%
The cash rate in the policy corridor has a price ceiling and price floor with how many basis points above the target?
50 basis points
25 basis points
15 basis points
5 basis points
