The Ultimate Cash Rate Quiz

The cash rate is the interest rate that banks pay to borrow funds from other banks in the money market overnight. It influences all other interest rates, including mortgage and deposit rates. (correct)

The cash rate is the interest rate that banks pay to borrow funds from the Reserve Bank at a little above the target cash rate. It influences all other interest rates, including mortgage and deposit rates.

The cash rate is the interest rate that banks pay to borrow funds from other banks in the money market overnight. It influences only deposit rates.

The cash rate is the interest rate that banks pay to borrow funds from the Reserve Bank at a little above the target cash rate. It influences only mortgage rates.

The Treasurer decides whether to change or maintain the cash rate target.

The Reserve Bank Board decides whether to change or maintain the cash rate target. The Board comprises the Governor, Deputy Governor, Secretary to the Australian Treasury and six other members appointed by the Treasurer. (correct)

The Australian Government decides whether to change or maintain the cash rate target.

The Reserve Bank Governor decides whether to change or maintain the cash rate target.

To support the stability of the currency, full employment, and the economic prosperity and welfare of the people of Australia. (correct)

To maintain a balanced budget and reduce government debt.

To decrease interest rates in order to stimulate economic growth.

To increase interest rates in order to control inflation.