Which of the Following Correctly Describes What the Reserve Bank

question 65

Multiple Choice

Which of the following correctly describes what the Reserve Bank of Australia (RBA) used as monetary targets in the past?

• A)The RBA used M3 as its main target after 1993.
• B)The RBA focused on base money as a target after the deregulation of the financial system.
• C)The RBA increased its reliance on interest rate targets since the early 1990s.
• D)After 1996, the RBA focused on monetary targeting.

---

Definitions:

Annual Returns

Annual returns are the percentage change in an investment's value over a year, including interest, dividends, and capital gains.

Annual Payments

Payments that are made once a year for various purposes, such as loan repayments, insurance premiums, or leases.

Note Payable

A written agreement where a borrower promises to pay back a certain sum of money to a lender at a future date, often with interest.

Discounted

The method of calculating the current value of a single payment or a series of future payments.