Banks are required to maintain exchange settlement accounts with the Reserve Bank.Settlement of exchange settlement account transactions requires the use of same-day funds.Which of the following is NOT generally a source of same-day funds?

Question

Quizplus · Accepted Answer

Commonwealth government securities held for liquidity purposes are not generally a source of same-day funds. A and B are sources of same-day funds as they involve transactions with the Reserve Bank. D is also a source of same-day funds as banks can use their surplus balances in exchange settlement accounts to settle transactions.

Banks Are Required to Maintain Exchange Settlement Accounts with the Reserve