Part A. Knowledge

1. Explain some of the ways in which changes in interest rates affect the economy.
2. How does the RBA maintain its cash rate if there is an increase in the demand for money?
3. Explain the difference between primary and secondary financial markets.
4. What is the difference between the securities market and the money market?
5. How are the consumers protected in the Australian financial transactions?

PART B - Case Study

Visit the following web pages below and review the policy response to the COVID-19 by the RBA and the federal government:

https://www.rba.gov.au/covid-19/

https://treasury.gov.au/coronavirus

https://www.apra.gov.au/news-and-publications/apra-issues-letter-for-adis-on-loans-impacted-by-covid-19

a)Summarize the monetary policy response.

b)Summarize the fiscal policy response.

c) Summarize Australia's regulatory response to the COVID-19