With a Fixed Exchange Rate, the RBA

question 24

Multiple Choice

With a fixed exchange rate, the RBA:

• A) had to buy Australian dollars when the currency threatened to depreciate.
• B) had to sell Australian dollars when the currency threatened to appreciate.
• C) would alter the domestic money supply when they intervened to keep the Australian dollar at its fixed rate.
• D) had strong control over domestic interest rates.

---

Definitions:

Whisper

A soft or hushed tone of voice, typically used to convey information privately or without producing much sound.

Shield

A protective device or barrier used to block an attack or prevent harm from coming to an individual or object.

Muffled

Describes a sound that is softened or made less loud and clear, typically by being obstructed or covered by something.

Otoscopic Examination

Otoscopic examination is a medical procedure involving the use of an otoscope to visually inspect the external auditory canal and tympanic membrane of the ear.