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:

Accounting Department

A division within a company or organization that is responsible for managing financial records, transactions, and reporting.

Periodic System

An inventory system that updates inventory and cost of goods sold at the end of each accounting period.

Vouchers Payable

A liability account in the general ledger that represents the controlling account for the sum of individual vouchers.

Voucher Register

A special journal replacing the purchases journal; it records prenumbered vouchers at the time the liabilities are incurred.