Open-Market Operations Refer To

question 49

Multiple Choice

Open-market operations refer to:

• A)the method by which the Reserve Bank of Australia implements monetary policy.
• B)the method by which the Reserve Bank of Australia allows banks to raise finance.
• C)the method by which the Reserve Bank of Australia regulates the finance sector.
• D)the market for short-term securities.

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Definitions:

Accrued Interest

The interest on a bond or loan that has accumulated since the principal investment, or since the previous interest payment if there has been one already.

Brokerage Fees

Charges imposed by a broker for acting as the intermediary in facilitating transactions, such as buying or selling securities.

Equity Method

An accounting technique used to record investments in associate companies where the investor has significant influence but not full control.

Cash Dividend

A payment made by a company out of its profits to shareholders, usually in the form of cash.