To enforce an increase in the cash rate the RBA will sell securities to ADIs (and other dealers).

Name: To enforce an increase in the cash rate the RBA will sell securities to ADIs (and other dealers).
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Question

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Selling securities to ADIs (authorized deposit-taking institutions) and other dealers reduces the amount of cash in the economy and increases the cost of borrowing, which leads to an increase in the cash rate. Therefore, the RBA may choose to sell securities to enforce an increase in the cash rate.

To Enforce an Increase in the Cash Rate the RBA