The 'cash rate' is the interest rate
A) the Reserve Bank of Australia charges commercial banks.
B) banks charge their largest customers.
C) banks charge each other for overnight loans.
D) on a government bond or security.
The overnight cash rate is determined
A) administratively by the Reserve Bank of Australia.
B) by the supply of and demand for cash.
C) directly by household demand for funds.
D) directly by firm demand for funds.
Accounts held with the Reserve Bank of Australia (RBA)which are used by financial institutions to settle payments between each other and with the RBA are called _________.
A) credit accounts
B) real-time gross settlement accounts
C) debit accounts
D) exchange settlement accounts
The Reserve Bank of Australia can increase the cash rate by
A) borrowing from the banks using reverse repurchase agreements.
B) purchasing bonds and securities, which increases banks' reserves.
C) lending cash to banks using repurchase agreements.
D) purchasing bonds and securities, which decreases banks' reserves.