2025HSCShort answer

Q24 (a)

2 marks

Question

Outline the purpose of monetary policy in Australia.

Try the question before revealing the answer.

Solution

Criteria	Marks
Outlines the purpose of monetary policy in Australia	2
Provides some relevant information	1

Sample answer:

Monetary policy is used by the RBA to influence the cost and availability of credit in the economy. It does so primarily by managing economic fluctuations and seeking to control price stability.

Answers could include:

Price stability including Australia’s currency
The maintenance of full employment in Australia
The promotion of the economic prosperity and welfare of the people of Australia.

Supplied marking guidance · human reviewed

Compare this with your working, not only your final sentence.

Syllabus alignment

Economic Policies and Management

Macroeconomic and microeconomic policiesEvaluate fiscal, monetary, microeconomic and labour market policies in Australia.

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