The state of the economy and financial markets affects elements of lending
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The state of the economy and financial markets affects elements of lending

Task 2 ― The Australian financial market 

The state of the economy and financial markets affects elements of lending, such as interest rates; and also has an impact on consumers’ attitudes to borrowing and debt.

The Reserve Bank of Australia (RBA) is Australia’s central bank and is responsible for monetary policy, financial and payment system policies, and other financial matters. 

Task 2: Question 1

Research the RBA website and answer the following questions: 

(a) List the three (3) statutory objectives (key elements) the RBA sets out to achieve. 

There is a link to the website in the Toolbox.

Watch the Monetary Policy Framework video on the RBA website: <www.rba.gov.au/monetary-policy>.

(b) The RBA meet on the first Tuesday of each month to review the cash rate. 

Name three (3) things relevant to a mortgage broker’s role upon which the cash rate impacts.

Hint
Accounts & FinanceFinancial Markets include any place or system that provides buyers and sellers the means to trade financial instruments, including bonds, equities, the various international currencies, and derivatives. Financial markets facilitate the interaction between those who need capital with those who have capital to invest....

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