HSC Question (5marks) (1 Viewer)

[moey16]

Explain how the Reserve Bank operations in the foreign exchange market and the domestic money market can influnce the value of the $A (5mrks 05 hsc)

DMO, Selling and Buying Commonwealth Government Securities , Exchange Settlements , currency swaps. am i along the right lines of answering this question ?

also if a question states somthing like outline why market failure tends to occur with allocation of resources... is that refering to excludability, transferabilty and enforcability.

 

[nod089]

Explain how the Reserve Bank operations in the foreign exchange market and the domestic money market can influnce the value of the $A (5mrks 05 hsc)

DMO, Selling and Buying Commonwealth Government Securities , Exchange Settlements , currency swaps. am i along the right lines of answering this question ?
---yes---

also if a question states somthing like outline why market failure tends to occur with allocation of resources... is that refering to excludability, transferabilty and enforcability.

'The failure of the market to allocate resources efficiently. There are four main causes; abuse of market power; failure to account for externalities; the provision of public goods; and asymmetry of information, that is, where one actor knows more about market values than other actors in the sector.'

..

 

[Mr-X]

The RBA dirtying the float and monetry policies can also infulence the $A.

 

[dcalla]

briefly explain monetary controls THROUGH DMO

and dirtying the float