quick! remember that

Question 1

RBA financial aggregates

Answer 1

• currency (all money in circulation held by households and businesses
• M1 (currecy and deposits in transactional bank accounts)(measure of liquid assets)
• M3 (M1 + all non-transactional deposits)
• broad money (consists of M3 + non-bank financial intermediaries)

Question 2

roles of the CFR

Answer 2

• RBA (manages monetary policy, manages liquidity, oversees financial system satbility)
• ASIC (maintain and faclitate financial markets, enforces conduct laws)
• APRA (supervises banks and all deposit taking instituations + superannuation)
• Treasury (advises government on finanical issues, primary director of government policy)

Question 3

factors affecting demand for funds

Answer 3

• precautionary
• speculative
• transactionary

Question 4

labour force participation rate, unemployment rate

Answer 4

labour force/working age pop. (E+U/W)
unemployed/labour force (U/E+U)