Monetary Policy

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