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In Order to Reach Its Cash Rate Target,the Reserve Bank

Question 11

Multiple Choice

In order to reach its cash rate target,the Reserve Bank of Australia (RBA) :


A) lends to banks at the cash rate target.
B) imposes the rate used by banks when they lend to each other.
C) brings the ESF supply to a level so that it intersects with the demand for ESF at the level of the cash rate target.
D) brings the demand for ESF to a level so that it intersects with the supply of ESF at the level of the cash rate target.

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