The Money Base Is Equal To

question 66

Multiple Choice

The money base is equal to:

• A) currency + balances in ESAs + other liabilities of the RBA to the private sector.
• B) currency + balances in ESAs.
• C) currency + balances in ESAs - other liabilities of the RBA to the private sector.
• D) currency - balances in ESAs - other liabilities of the RBA to the private sector.

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Definitions:

Low-Coupon Bonds

Low-Coupon Bonds are bonds that have a lower interest rate than the prevailing market interest rate, typically making them sell at a discount to their face value.

Yield To Maturity

The total return anticipated on a bond if the bond is held until the end of its lifetime.

Annual Coupon

Annual Coupon refers to the yearly interest payment made by a bond issuer to its bondholders, based on the bond's face value.

Premium

The amount by which the price of a financial instrument or commodity exceeds its intrinsic or face value, often related to insurance costs or bond prices.