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If the Reserve Bank of Australia Wants to Raise the Cash

Question 29

Multiple Choice

If the Reserve Bank of Australia wants to raise the cash rate it will


A) buy government securities in order to increase the quantity of reserves.
B) sell government securities in order to decrease the quantity of reserves.
C) sell government securities in order to increase the quantity of reserves.
D) buy government securities in order to decrease the quantity of reserves.

Correct Answer:

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