For over a decade, monetary policy in Australia has been carried out mainly by using repurchase agreements rather than the outright purchase of government securities.

Question

Quizplus · Accepted Answer

The statement is true. In Australia, the central bank mainly uses repurchase agreements to conduct monetary policy, rather than outright purchases of government securities. This approach is known as a "liquidity-based" framework, and it allows the central bank to manage the level of reserves in the banking system to manipulate short-term interest rates.

For Over a Decade, Monetary Policy in Australia Has Been