When the RBA Is Trying to Control Rising Inflation, It

question 48

Multiple Choice

When the RBA is trying to control rising inflation, it:

• A)decreases the interest rate that financial institutions can earn on overnight loans of their currency
• B)targets inflation at two to three percent
• C)increases the interest rate that financial institutions can earn on overnight loans of their currency
• D)all of the above

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Definitions:

Reportable Segment

A component of a business that generates revenues and expenses related to the business’s operations, and whose financial results are regularly reviewed by the entity’s chief operating decision maker.

Minimum Revenue

The lowest amount of income considered acceptable or necessary for a company or project to stay viable.

Asset Test

A measure of the liquidity of a company by comparing its liquid assets to its current liabilities.

Reportable Segment

A distinguishable component of an enterprise engaging in operations from which it may earn revenues and incur expenses, whose operating results are regularly reviewed by the entity's chief operating decision maker.