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Economic management — Question 2

QCAA 2025, Paper 1 · 1 mark

Q2 · 2025 · External assessmentUnclassified1 mark

QUESTION 2

What happens when the Reserve Bank of Australia decides to decrease the cash rate?

(A) Bank deposit rates rise.

(B) Banks pass on the rate change as soon as possible.

(C) Financial institutions raise variable and fixed loan rates.

(D) Interest rates change depending on each financial institution.

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