Which of the Following Statements Is NOT Correct? the Cash

question 41

Multiple Choice

Which of the following statements is NOT correct? The cash rate:

• A)is the result of the demand and supply of ESF.
• B)is the interest rate on overnight interbank loans.
• C)is determined by a decree of the Reserve Bank of Australia (RBA).
• D)is used as a reference rate by banks for the determination of other interest rates.

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Definitions:

Unit Elasticity

A situation where a change in the price of a product leads to a proportional change in the quantity demanded or supplied.

Demand

The quantity of a good or service that consumers are willing and able to purchase at a given price over a specified period of time.

Unit Elasticity

A circumstance where the percentage variation in the quantity that is either demanded or supplied matches the percentage variation in its price.

Demand

The amount of a product or service that shoppers are ready and capable of buying at different price levels within a specific period.