Solved

By Law, the Objectives of the Reserve Bank of Australia

Question 21

Multiple Choice

By law, the objectives of the Reserve Bank of Australia are


A) to keep the cash rate below 2 per cent a year and the unemployment rate at its natural rate.
B) to conduct monetary policy in a way that will best contribute to the objectives of the stability of the currency, the maintenance of full employment, and the economic prosperity and welfare of the Australian people.
C) to keep the unemployment rate below 5 per cent, the inflation rate between 1 and 3 per cent a year, and long- term interest rates below 4 per cent a year.
D) to keep the labour force participation rate above 80 per cent, the inflation rate below 2 per cent a year, and the exchange rate fluctuating by less than 3 per cent a year.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents