The main method the Australian Reserve Bank uses to manage the money market cash position is:

Question

Quizplus · Accepted Answer

The Reserve Bank of Australia manages money market cash position by managing the amount of Commonwealth securities in the market. It aims to keep the cash rate close to the target set by the Reserve Bank Board by affecting the supply of funds in the overnight money market. It buys or sells Commonwealth securities to manage the supply of funds, which helps in controlling the cash rate.

The Main Method the Australian Reserve Bank Uses to Manage