What are the two main liquidity facilities available to Australian FIs to prevent financial disturbances occurring?
A)deposit insurance and the discount window
B)intra-day repurchase agreement and overnight repurchase agreement
C)financing gap and the financing requirement
D)secondary credit and seasonal credit

Question

Quizplus · Accepted Answer

The two main liquidity facilities available to Australian Financial Institutions (FIs) to prevent financial disturbances are intra-day repurchase agreements and overnight repurchase agreements. These mechanisms allow FIs to borrow funds on a very short-term basis to ensure they have sufficient liquidity to meet their obligations.

What Are the Two Main Liquidity Facilities Available to Australian