The RBA uses the short-term money market in order to influence:

Question

Quizplus · Accepted Answer

The RBA uses the short-term money market to influence the monetary base, which is the amount of money in the economy that includes physical currency, banks' reserves, and the deposits made by commercial banks at the RBA. By adjusting the cash rate, the RBA can increase or decrease the supply of money in the economy and therefore influence inflation and economic growth. The other three options are not directly influenced by the short-term money market.

The RBA Uses the Short-Term Money Market in Order to Influence