Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The interest rate on 3-year Australian government bonds has been approximately 0.1% so far in 2021. Which of the following is the most likely explanation
The interest rate on 3-year Australian government bonds has been approximately 0.1% so far in 2021. Which of the following is the most likely explanation of this near-zero market rate of interest on government bonds?
Purchases of bonds by the RBA on the primary market.
The low level of government debt.
Purchases of bonds by the RBA on the secondary market.
Budget surpluses in recent years.
Government budget deficits.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started