The Reserve Bank of Australia (RBA) took a number of temporary actions during the global financial crisis to provide liquidity and avert financial system disturbance.Which of the following were not actions supplied by the RBA?
A)Extension of collateral eligible for open market operations.
B)Longer term repos offered daily that provided funding for six-month and one-year terms.
C)Residential mortgage-backed securities and asset-backed commercial paper.
D)A foreign exchange swap facility to address the global shortage of euro in financial markets.

Question

Quizplus · Accepted Answer

The Reserve Bank of Australia (RBA) did not provide a foreign exchange swap facility to address a global shortage of euros in financial markets. The actions they took were primarily focused on domestic liquidity and included extending collateral eligibility, offering longer-term repos, and accepting various securities, but not specifically addressing euro shortages.

The Reserve Bank of Australia (RBA) Took a Number of Temporary