Question: Please note that they have asked for If the RBA decreased the cash rate and NOT increase. So please do not copy and paste the

QUESTION 5 You are the bank's liquidity manager. If the RBA decreased

Please note that they have asked for "If the RBA decreased the cash rate" and NOT increase. So please do not copy and paste the answers which are already on chegg. Thanks!

QUESTION 5 You are the bank's liquidity manager. If the RBA decreased the cash rate (overnight interbank borrowing rate), the risk of illiquidity [A] and the cost of illiquidity [B]. Therefore, you can [C] the ESF buffer. As a result, your bank will be willing to create [D] loans and deposits. A and D are did not change, the same O decreased, the same O decreased, more did not change, more

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