By Using Open Market Operations,the Reserve Bank

question 84

Multiple Choice

By using open market operations,the Reserve Bank

• A)adjusts the demand for reserves to keep bank rates in line with the cash rate target.
• B)adjusts the supply and demand of reserves to keep the cash rate equal to its target.
• C)controls banks' demand for reserves,thereby keeping the cash rate equal to its target.
• D)adjusts the supply of reserves to keep the cash rate equal to its target.
• E)None of the above answers is correct.

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Definitions:

Residual Value

The projected valuation of an asset at the termination of its usability period.

Depreciation Estimates

Projections made regarding the decrease in value of a fixed asset over time, affecting financial statements and tax liabilities.

Residual Value

The anticipated worth of an asset upon reaching the conclusion of its serviceable life.

Double-Declining-Balance

An accelerated method of depreciation which doubles the regular depreciation amount, reducing the value of an asset more quickly in its early years.