The cash rate refers to the interest rate charged by the Reserve Bank of Australia (RBA) on inter-bank overnight loans. This rate influences the interest rates that banks charge on loans and pay on deposits, as well as having wider implications for economic activity and inflation. The other options listed do not accurately describe the cash rate.

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The Cash Rate Is

Question 90

Multiple Choice

The cash rate is

A) the interest rate on money.
B) the interest rate on cash money.
C) the interest rate paid to the government.
D) the interest rate on inter-bank overnight loans.
E) None of the above.

Correct Answer: