Since the Australian dollar was floated in 1983, the RBA has:
A) not operated in the FOREX market.
B) intervened in the FOREX market continually in order to maintain the Australian dollar at a certain level.
C) intervened in the FOREX market only when the Australian dollar is under speculative pressure or when it is extremely volatile.
D) handed control of the Australian dollar over to the Treasury.

Question

Quizplus · Accepted Answer

Since the 1980s, the RBA has only intervened in the FOREX market when the Australian dollar is under speculative pressure or when it is extremely volatile. The RBA's main goal is to maintain low inflation, and they believe that allowing the exchange rate to float freely helps achieve this goal. Therefore, they only intervene when they believe it is necessary for the overall stability of the economy.

Since the Australian Dollar Was Floated in 1983, the RBA