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9 Hums economics

Test

What is the RBAThe reserve bank of Australia,
What is the purpose of the RBA Keeps economy table, strong and growing
Is the RBA apart of the government No, it works closely with the government
Inflation definition When goods and services go up.
What keeps inflation between 2-3% The RBA uses Monetary policy
What is cash rate interest rate the RBA charges banks when money is borrowed.
What does the RBA do when inflation is too low? Lowers the cash rate.
How does a lower cash rate affect spending? People generally spend more
Why does the RBA increase the cash rate? To reduce spending and help bring inflation down.
Why does the RBA lower the cash rate? To encourage spending and economic growth.
What does ensuring financial stability mean? Making sure banks and financial institutions work well and safely.
What does the RBA do to help ensure financial stability? It helps keep Australia's financial system safe and stable.
What does financial stability help protect Australia from? Financial crises and global economic shocks.
Created by: user-2052415
 

 



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