Through its impact on cash rates, the Reserve Bank can affect rates further out on the maturity spectrum. What is usually the order of transmission when Reserve Bank increases the cash rate?

Question 11 options:

1) Cash rates; commercial bill yields; banks' deposit rates; banks' prime lending rates

2) Cash rates; commercial bill yields; banks' prime lending rates; banks' deposit rates

3) Cash rates; banks' deposit rates; commercial bill yields; banks' prime lending rates

4) Cash rates; banks' prime lending rates; commercial bill yields; banks' deposit rates

Question

Through its impact on cash rates, the Reserve Bank can affect rates further out on the maturity spectrum. What is usually the order of transmission when Reserve Bank increases the cash rate?

Question 11 options:

1)	Cash rates; commercial bill yields; banks' deposit rates; banks' prime lending rates

2)	Cash rates; commercial bill yields; banks' prime lending rates; banks' deposit rates

3)	Cash rates; banks' deposit rates; commercial bill yields; banks' prime lending rates

4)	Cash rates; banks' prime lending rates; commercial bill yields; banks' deposit rates

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Question

Through its impact on cash rates, the Reserve Bank can affect rates further out on the maturity spectrum. What is usually the order of transmission

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