Which of the Following Statements About the RBA's Monetary Policy

question 60

Multiple Choice

Which of the following statements about the RBA's monetary policy is correct?

• A) The RBA must report each week to the Senate on the conduct of monetary policy.
• B) Reserve requirements have been abandoned.
• C) Over the past thirty years, the RBA has always stayed within its pre- announced target rates for growth in M3.
• D) The rate at which the RBA lends money to banks is called the "federal funds rate".
• E) The most common tool used by the RBA is a change in the required ratio of reserves to deposits.