Each bank maintains:
A) good communication with the RBA.
B) strong control over the RBA's decisions.
C) an exchange settlement account with the RBA.
D) an exchange lending account with the RBA.

Question

Quizplus · Accepted Answer

All banks maintain an exchange settlement account with the Reserve Bank of Australia (RBA) to facilitate internal banking operations and maintain their liquidity. Option A is incorrect because while it is important for banks to communicate with the RBA, it does not imply that they maintain "good communication." Option B is incorrect because banks do not have control over the RBA's decisions, rather the RBA regulates and supervises the banking system in Australia. Option D is incorrect as there is no such thing as an exchange lending account with the RBA.

Each Bank Maintains