In relation to impacts on the Australian financial system liquidity,if payments from the official sector to the private sector exceed the flow of funds to the official sector then there will be:

Question

Quizplus · Accepted Answer

When payments from the official sector to the private sector exceed the flow of funds to the official sector, it results in a system surplus. This is because more money is being injected into the private sector than is being withdrawn by the official sector, increasing liquidity in the financial system.

In Relation to Impacts on the Australian Financial System Liquidity,if