The RBA provides two mechanism to help ADIs manage period of intraday illiquidity.These are:
A)intraday repos and payment queue adjustments
B)the inter-bank overnight market
C)open-market operations and the cash rate
D)the overnight market and intraday repos
E)overnight funds from the RBA and payment queue adjustments.

Question

Quizplus · Accepted Answer

Intraday repos and payment queue adjustments are the two mechanisms provided by the Reserve Bank of Australia (RBA) to help Authorized Deposit-taking Institutions (ADIs) manage periods of intraday illiquidity. Intraday repos allow ADIs to obtain short-term liquidity from the RBA using securities as collateral, while payment queue adjustments help manage the flow of payments to ensure liquidity is maintained throughout the day.

The RBA Provides Two Mechanism to Help ADIs Manage Period