The RBA Is a Large Investor in Treasury Bonds and Notes

question 59

Multiple Choice

The RBA is a large investor in Treasury bonds and notes due to its role:

• A)as the bank of the government.
• B)in the stability of the government.
• C)in the conduct of monetary policy.
• D)as a supervisor of the financial system.

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Definitions:

Months

Units of time, approximately 1/12th of a year, used in calendars to segment time.

Maturity Value

The total amount that will be paid to the investor at the end of a fixed-income investment's life.

Months

Units of time, each roughly equivalent to one twelfth of a year, used in planning and organizing.

Rate Of Interest

The percentage of the principal that will be charged for a particular period of time, normally one year.