If the Australian Reserve Bank,through its monetary policy market operations,buys government securities,this will lead to an easing of interest rates.

Question

Quizplus · Accepted Answer

When the Reserve Bank of Australia buys government securities, the sellers of the securities receive funds and, in the case of banks, have more funds for lending out, leading to a drop in interest rates.

If the Australian Reserve Bank,through Its Monetary Policy Market Operations,buys