Davidson; Management - 3rd Australasian Edition



1.
The Reserve Bank of Australia play a key role in monetary policy.
A. True
B. False


2.
The Reserve Bank of Australia is responsible for prudential supervision of financial institutions in Australia.
A. True
B. False


3.
A primary function of the Reserve Bank of Australia is economic stabilization via control of the money supply.
A. True
B. False


4.
The Reserve Bank of Australia can change the level of Australian depository institutions reserves.
A. True
B. False


5.
The payments system is a mechanism for clearing checks.
A. True
B. False


6.
Cash or legal tender is issued by the Reserve Bank of Australia.
A. True
B. False


7.
EFTPOS, credit cards and direct entry credits and debits are credit instruments.
A. True
B. False


8.
Financial institutions hold exchange settlement account with central bank for transactions settlement.
A. True
B. False


9.
Rediscount facility is involves financial institutions borrowing at a discount with the Reserve Bank of Australia.
A. True
B. False


10.
The Reserve Bank of Australia operates independently of the government.
A. True
B. False


11.
Australian banking institutions are approved by the parliament.
A. True
B. False


12.
Prudential supervision of financial institutions is about controlling risk management of financial institutions, maintain safetiness of depositors' funds and provide stability in the financial system.
A. True
B. False


13.
The Bank for International Settlement promotes stability in the financial institutions.
A. True
B. False


14.
Like any country, Hong Kong has a central bank, which maintains stability and safety in the financial system.
A. True
B. False


15.
The chief objective Reserve Bank of New Zealand is to maintain price stability.
A. True
B. False


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