Which of the Following Statements Is Not Correct? When Implementing

question 15

Multiple Choice

Which of the following statements is not correct? When implementing Repos open market operations the Reserve Bank of Australia (RBA) :

• A)announces before the auction the interest rate that banks have to pay to acquire ESF.
• B)usually buys securities from banks with the commitment to resell them at an agreed later date.
• C)serves the banks with the best interest rates in their bids until the exhaustion of the amount of ESF it intended to inject in the banking sector.
• D)invites banks to bid to acquire ESF.

---

Definitions:

Bonds

Fixed-income investment products that represent loans made by an investor to a borrower, typically corporate or governmental, which is obligated to pay back with interest.

Comprehensive Income

The total change in equity for a reporting period other than from transactions with owners, encompassing all revenues, gains, expenses, and losses.

Net Income

The total earnings of a company after subtracting all expenses, taxes, and losses from total revenue.

Retained Earnings

The portion of a company's profits that is kept or retained and saved for future use, reinvestment, or to pay debt.