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.
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