To influence the cash rate, the RBA:

Question

Quizplus · Accepted Answer

The RBA carries out open-market operations in the money markets to influence the cash rate. These operations involve buying or selling government bonds, which affects the level of liquidity in the economy and can impact the cash rate. Options A and B are not appropriate methods for influencing the cash rate, while the RBA does carry out close-market operations in addition to open-market operations, they are not as significant in determining the cash rate.

To Influence the Cash Rate, the RBA