QUESTION 8 0.75 points Saving Answer Which of the following assets is currently accepted by the Reserve Bank of Australia as a collateral for a (rev) repo? O A. Household loans O B. Central bank loans O C. Banks' issued debt securities O D. Non-bank corporate securities O E. Banks' shares QUESTION 9 0.75 points Save Answer Which of the following statements is CORRECT? O A. The punishment for breaching the buffers is more severe than the punishment for breaching the minimum capital requirements. ? O B. A bank can decide to meet the buffers before it has met the minimum requirements. C. The countercyclical buffer is always 2.5% of RWA, regardless of the state of the economy and the country. O D. The conservation buffer requirement can be different accross countries. O E. Regulatory capital that is used for meeting the minimum requirements cannot be used for the conservation and the countercyclical buffers.QUESTION 10 0.75 points Save Answer Reserves Holding Wanted Reserves Bank A 16 12 Bank B 10 12 Bank C 12 8 Which of the following statements is correct? O A. There is an excess demand for reserves over supply of 6. O B. The actual interbank market has an excess of lending over borrowing of 6. ? C. Banks wish to borrow 8 on the actual interbank market. O D. Competition is expected to drive the cash rate up. O E. The supply of reserves is 32.QUESTION 11 0.75 points Save Answer Use table A3 a03.xIs to answer the question. Which of the following statements is NOT correct? On the 15th November 2019, during its reverse open market operations, the RBA O A. conducted a 12-days (rev) repo. O B. injected $m 1245 ESF. O C. made the winning banks pay an interest rate of 0.84% or above. O D. accepted some bids above 0.85%. O E. None as all the statements above are correct. QUESTION 12 0.75 points Save Answer Assume the Fed funds rate is initially on target. The demand for reserves by commercial banks increases by $million 2. Households receive allowances from the government account held at the Federal Reserve for $million 7 ? Which of the following statements is correct? If the Federal Reserve wants to keep the Fed funds rate on target, it must through its the open market operations $million O A. inject Fed funds; 2 O B. inject Fed funds; 7 O C. withdraw Fed funds; 5 O D. inject Fed funds; 9 O E. withdraw Fed funds; 9QUESTION 13 0.75 points Save Answer Which of the following actions decreases the stock of reserves and is NOT a decision by the central bank? O A. The government pays social benefits to households. O B. Commercial banks pay back a loan to the central bank. O C. The central bank implements the first stage of a reverse repo with commercial banks. O D. A commercial bank pays back an interbank loan. O E. None of the above actions qualify. QUESTION 14 0.75 points Save Answer Country A decreases its countercyclical buffer from 1% to 0% while Country B increases its countercyclical buffer from 0% to 1%. Which of the following statements is NOT correct? ? O A. The regulator in Country B is expecting a negative event in the future. O B. Banks in Country A have now a larger capacity to write off assets, without breaching the minimum capital requirements. C. Country A and Country B are likely to be in different stages of the business cycle. OD. Banks in Country B are likely to increase the risk of their assets and/or the size of their assets if they cannot issue shares or increased retained profits. O E. Banks in Country A do not need to contract their assets and/or decrease the risk of their assets if they lose some equity.QUESTION 15 0.75 points Save Answer Which of the following statements is correct? The reason why central banks have enlarged the list of eligible securities for reverse repos during the GFC was because O A. central banks had not enough government bonds. B. government bonds were not in enough quantity in banks' assets to allow a massive injection of central bank money. O C. many government bonds had been written off. O D. the interest rate target could not be lowered anymore. O E. central banks wanted to provide central bank money to non ADIs. QUESTION 16 0.75 points Save Answer Who benefits the most from the minimum capital requirements imposed by Basel regulation? O A. The regulator in charge of implementing the regulation in a given country. ? O B. Banks' creditors who benefit from a government deposit insurance protection. O C. Shareholders of the bank. O D. The bondholders of the bank. O E. The companies who issued the securities owned by the banks