The Reserve Bank of Australia engages in open market operations only when it wants to change interest rates.

Question

Quizplus · Accepted Answer

While changing interest rates is one possible reason for the Reserve Bank of Australia to engage in open market operations, it is not the only reason. The Reserve Bank may also use open market operations to manage the supply of money and credit in the economy, or to maintain a particular exchange rate target.

The Reserve Bank of Australia Engages in Open Market Operations