a. The Reserve Bank of Australia has announced a 0.25% decrease in the cash rate. What...

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Finance

a. The Reserve Bank of Australia has announced a 0.25% decreasein the cash rate. What effects does this have on the economy andthe financial markets? Provide examples of who
might benefit from this decrease and those that do not.
b.Explain the Australian dividend imputation credit system andhow it applies in Australia. Include an analysis of how the receiptof franking credits will result in differing returns for
Australian resident and international investors.

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Answer a The monetary decision of the reserve bank of Australia comes in form of changes in Cash Rate the rate clearly indicates the interest rate would charged on over night money that is money See Answer

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a. The Reserve Bank of Australia has announced a 0.25% decreasein the cash rate. What effects does this have on the economy andthe financial markets? Provide examples of whomight benefit from this decrease and those that do not.b.Explain the Australian dividend imputation credit system andhow it applies in Australia. Include an analysis of how the receiptof franking credits will result in differing returns forAustralian resident and international investors.