The RBA

question 71

Multiple Choice

The RBA:

• A)trades FX to keep the AUD within its target range
• B)trades FX for 'smoothing and testing' purposes
• C)believes the FX market is prone to excessive cyclical movements
• D)believes the FX market behaves in a manner that is consistent with the efficient market hypothesis
• E)trades to reduce short-term volatility.

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Definitions:

Role Norms

Expected behaviors and obligations associated with specific positions or roles within a society or organization.

External Social Controls

Mechanisms imposed by society, such as laws and social norms, that regulate individuals' behavior and maintain social order.

Socialization

The process through which individuals learn and internalize the norms, values, behaviors, and social skills appropriate to their society.

Conventions

They are established norms, practices, or criteria within a culture, genre, or activity that guide behaviors and expectations.