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Question 1015 RBA cash rate, monetary policy

Former Reserve Bank of Australia (RBA) Governor Phil Lowe says that the RBA cash rate is the interest rate in the Australian:

Question 1016 RBA cash rate, monetary policy

Former RBA Governor Phil Lowe says that if the economy is growing very strongly, then prices might be growing too:

Question 1017 RBA cash rate, monetary policy

Former RBA Governor Phil Lowe says that when the RBA raise interest rates, homeowners' mortgage loan interest expense will be:

Question 1018 RBA cash rate, monetary policy, foreign exchange rate

RBA Governor Phil Lowe says that when the RBA raises the cash rate (by surprise), the Australian dollar (AUD) tends to:

Question 1019 RBA cash rate, monetary policy, wealth effect

Former RBA Governor Phil Lowe says that when the RBA raise the cash rate, asset prices tend to:

Question 1020 Federal funds rate, monetary policy, dot plot

US Federal Reserve Chair Jerome Powell showed the 'dot plot' of Federal Open Market Committee (FOMC) members' estimated future Fed fund rates following their quarterly summary of economic projections on 15 Dec 2021. The dot plot shows that committee members intended to make monetary policy more:

Question 846 monetary policy, fiscal policy

Below is the Australian central bank’s cash rate.

From 2011 to 2017 the Australian central bank has implemented:

Question 848 monetary policy, no explanation

Which of the following is NOT the Australian central bank’s responsibility?

Question 1021 Federal funds rate, monetary policy, quantitative easing, tapering

US Fed Chair Jerome Powell held a news conference following the 25-26 January 2022 FOMC meeting.

Nick Timiraos reporting for The Wall Street Journal asked: "Raising rates and reducing the balance sheet both restrain the economy, both tighten monetary policy. How should we think about the relationship between the two? For example, how much passive runoff is equal to every quarter percentage point increase in your benchmark rate?"

Jerome Powell replied: "So, again, we think of the balance sheet as moving in a predictable manner, sort of in the background, and that the active tool meeting to meeting is not -- both of them, it's the federal funds rate. There are rules of thumbs. I'm reluctant to land on one of them that equate this. And there's also an element of uncertainty around the balance sheet. I think we have a much better sense, frankly, of how rate increases affect financial conditions and, hence, economic conditions. Balance sheet is still a relatively new thing for the markets and for us, so we're less certain about that." (US Fed, 2022)

When Nick Timiraos mentioned 'reducing the balance sheet', he's referring to:

(a) Quantitative easing (QE), where the US Fed increases its asset purchases. For example, by buying more US government bonds each month, increasing demand for bonds, raising their price and lowering their yield.

(b) Tapering, where the US Fed decreases its asset purchases. For example, by buying less US government bonds each month, decreasing demand for bonds, lowering their price and raising their yield.

(d) Contractionary conventional monetary policy, where the US Federal Reserve lowers the Fed funds rate.

(e) Expansionary non-conventional monetary policy, where the US Federal Reserve reduces its assets through the purchase of more US government bonds, increasing the US Federal Reserve's liabilities.