As Part of the Basel III Liquidity Reforms the RBA

question 51

Multiple Choice

As part of the Basel III liquidity reforms the RBA will establish a secure committed liquidity facility.

• A)This is necessary due to the shortage of capital required to be held by FIs.
• B)This is necessary due to the shortage of Australian government debt, T-bonds and T-notes, used in open market operations.
• C)This is necessary due to the shortage of international funds to purchase repos.
• D)All of the listed options are correct.

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Definitions:

Effective Listening

The skill of fully focusing on and understanding the speaker's message, involving both hearing and interpreting the information.

Empathetic Listening

The skill of understanding and sharing the feelings of another person by fully concentrating on their words and emotional expressions.

Clarifying

The process of making a statement or situation less confused and more comprehensible.

70/30 Principle

A guideline suggesting that effective communication should involve roughly 70% listening and 30% talking.