Question 1

In the environment of deregulation there is a question mark over the need for active monetary policy.

Accepted Answer

A) True 
 B)False

Question 2

The information on intermediate targets is available later than that for ultimate targets.

Accepted Answer

A) True 
 B)False

Question 3

M1 is equal to:

Accepted Answer

A)  Currency + Cheque deposits + Bank deposits. 
B)  Currency - Cheque deposits. 
C)  Currency + Cheque deposits. 
D)  none of the above. 
A)  Currency + Cheque deposits + Bank deposits. 
B)  Currency - Cheque deposits. 
C)  Currency + Cheque deposits. 
D)  none of the above.

Question 4

In the transmission of monetary policy to the economy, a rise in interest rates will result in:

Accepted Answer

A)  lower household saving. 
B)  lower business investment. 
C)  higher inflation. 
D)  rising asset prices. 
A)  lower household saving. 
B)  lower business investment. 
C)  higher inflation. 
D)  rising asset prices.

Question 5

A consumption tax such as the GST falls on expenditure only and therefore should help increase saving.

Accepted Answer

A) True 
 B)False

Question 6

The money base is equal to:

Accepted Answer

A)  currency + balances in ESAs + other liabilities of the RBA to the private sector. 
B)  currency + balances in ESAs. 
C)  currency + balances in ESAs - other liabilities of the RBA to the private sector. 
D)  currency - balances in ESAs - other liabilities of the RBA to the private sector. 
A)  currency + balances in ESAs + other liabilities of the RBA to the private sector. 
B)  currency + balances in ESAs. 
C)  currency + balances in ESAs - other liabilities of the RBA to the private sector. 
D)  currency - balances in ESAs - other liabilities of the RBA to the private sector.

Question 7

Over the period 1976 to 1983 Australia had a 'crawling peg' exchange rate regime.

Accepted Answer

A) True 
 B)False

Question 8

The 'announcement effect' of monetary policy refers to:

Accepted Answer

A)  the destabilising effect of the RBA governor announcing his retirement. 
B)  the media outcry whenever banks announce an increase in interest rates. 
C)  the impact on expectations resulting from public announcement of changes to the RBA's interest rate target. 
D)  the fallout in 1997 when the Wallis Inquiry findings were released. 
A)  the destabilising effect of the RBA governor announcing his retirement. 
B)  the media outcry whenever banks announce an increase in interest rates. 
C)  the impact on expectations resulting from public announcement of changes to the RBA's interest rate target. 
D)  the fallout in 1997 when the Wallis Inquiry findings were released.

Question 9

Discuss the issues raised by the relationship between the targets of monetary policy and the instruments available to achieve those targets.

Accepted Answer

The relationship between the targets of

Question 10

If we have high capital mobility and a fixed exchange rate regime, the authorities can run an independent domestic monetary policy.

Accepted Answer

A) True 
 B)False

In the environment of deregulation there is a question mark over the need for active monetary policy.

The information on intermediate targets is available later than that for ultimate targets.

M1 is equal to:

In the transmission of monetary policy to the economy, a rise in interest rates will result in:

A consumption tax such as the GST falls on expenditure only and therefore should help increase saving.

The money base is equal to:

Over the period 1976 to 1983 Australia had a 'crawling peg' exchange rate regime.

The 'announcement effect' of monetary policy refers to:

Discuss the issues raised by the relationship between the targets of monetary policy and the instruments available to achieve those targets.

If we have high capital mobility and a fixed exchange rate regime, the authorities can run an independent domestic monetary policy.

Financial Markets

Debt Securities and Markets

Introduction to Financial Calculations

Banks and Other Deposit Taking Institutions

The Payments System

Managed and Superannuation Funds

The Foreign Exchange Market

Listed Securities

Fixed Rate Derivatives

Options

Global Financial Crisis

Managing Foreign Exchange Risk

Managing Interest Rate Risk

Filters

Exam 7: Interest Rates, the Yield Curve and Monetary Policy

In the environment of deregulation there is a question mark over the need for active monetary policy.

The information on intermediate targets is available later than that for ultimate targets.

M1 is equal to:

In the transmission of monetary policy to the economy, a rise in interest rates will result in:

A consumption tax such as the GST falls on expenditure only and therefore should help increase saving.

The money base is equal to:

Over the period 1976 to 1983 Australia had a 'crawling peg' exchange rate regime.

The 'announcement effect' of monetary policy refers to:

Discuss the issues raised by the relationship between the targets of monetary policy and the instruments available to achieve those targets.

If we have high capital mobility and a fixed exchange rate regime, the authorities can run an independent domestic monetary policy.

Financial Markets

Debt Securities and Markets

Introduction to Financial Calculations

Banks and Other Deposit Taking Institutions

The Payments System

Managed and Superannuation Funds

The Foreign Exchange Market

Listed Securities

Fixed Rate Derivatives

Options

Global Financial Crisis

Managing Foreign Exchange Risk

Managing Interest Rate Risk

Filters