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Describe in several sentences if the following statements are TRUE, FALSE or UNCLEAR and why a) APRA decreases the countercyclical capital buffer below 1% with
Describe in several sentences if the following statements are TRUE, FALSE or UNCLEAR and why
a) APRA decreases the countercyclical capital buffer below 1% with immediate effect when it worries that banks may be in trouble in a distant future. [To assess this statement assume that we are after January 2023 and therefore the reforms of Basel III (also known as Basel IV) are operational.]
b) The purchase of Treasury bonds by the RBA from an insurance company creates new ESF and new bank deposits.
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