The RBA's Uses Open Market Operations

question 29

Multiple Choice

The RBA's uses open market operations:

• A)once a month, if the cash rate is changed
• B)to increase the cash rate by buying securities from ADIs and other dealers
• C)to decrease the cash rate by selling securities to ADIs and other dealers
• D)daily, to maintain the cash rate at its target.
• E)All of these.

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Definitions:

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A psychological phenomenon where feelings, desires, and expectations from one person are redirected and applied to another.

Gain-loss Theory

A theory suggesting that increases and decreases in the perceived likelihood of reward lead to increases and decreases in attraction and motivation.

Loneliness

The subjective feeling of isolation or disconnection from others, often accompanied by sadness or distress.

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