Banks are subject to which of the following regulations?
A) Their exchange settlement account must have a positive balance at the end of each day.
B) They can have any level of liquidity.
C) Their capital adequacy requirements are not essential.
D) They don't have to have an exchange settlement account with the RBA.

Question

Quizplus · Accepted Answer

Banks are required to maintain a positive balance in their exchange settlement account at the end of each day to meet their daily settlement obligations.

Answer: D
 Banks are required to have an exchange settlement account with the Reserve Bank of Australia (RBA) to settle payment obligations between banks, customers, and the RBA itself.

Banks Are Subject to Which of the Following Regulations