If the RBA Believes Inflation Will Rise to 7 Per

question 92

Multiple Choice

If the RBA believes inflation will rise to 7 per cent over the next few months, its likely response will be to:

• A) buy government securities from banks to decrease interest rates.
• B) buy government securities from banks to increase interest rates.
• C) sell government securities to banks to increase interest rates.
• D) sell government securities to banks to decrease interest rates.

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Definitions:

Abiotic Factors

Non-living chemical and physical parts of the environment that affect living organisms and the functioning of ecosystems.

Cambrian

A geological period approximately 541 million years ago marked by a rapid diversification of life forms in the fossil record.

Regulatory Controls

Measures and interventions implemented by a governing body to regulate activities within a specific area or industry to ensure safety, compliance, and fairness.

Illegal Acts

Actions or activities that violate the laws or regulations of a particular jurisdiction, subjecting the perpetrator to legal penalties.