What Are the Two Main Liquidity Facilities Available to Australian

question 72

Multiple Choice

What are the two main liquidity facilities available to Australian FIs to prevent financial disturbances occurring?

• A)deposit insurance and the discount window
• B)intra-day repurchase agreement and overnight repurchase agreement
• C)financing gap and the financing requirement
• D)secondary credit and seasonal credit

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Definitions:

Net Income

The net income of a business following the subtraction of all costs and taxes from its earnings.

Absorption Costing

A costing method that integrates all expenses related to the manufacturing process, including direct materials, direct labor, and overhead costs, both variable and fixed, into the final product cost.

Required Rate

Often refers to the minimum expected rate of return on an investment, taking into account the risk level.

Markup

The amount added to the cost of a product to cover expenses and profit, resulting in the selling price.