Financial Markets Analysis

Financial Market Functions of the check till of Australia (RBA) The Reserve b ready of Australia (RBA) has been the acress central bank since it assumed the portion from the tribe jargon in 1960. (Hunt & Terry, 2010) The Reserve avow of Australia (RBA) manages the preservations performance and chief(prenominal)tains the stability of the pecuniary system by means of the prep and administration of fin (5) key responsibilities.) As clear describe on the Reserve confide of Australias (RBA) website the five (5) main responsibilities of the Reserve shore of Australia (RBA)are; The conduct of the monetary indemnity The stability of the pecuniary system Regulation of the payments system melodic line issue Banker to the Commonwealth government These key responsibilities are harbor by the Reserve Bank Act 1959 which was established by an Act of Parliament because the Reserve Bank of Australia is a statutory authority. (www.rba.gov.au, 2011) The formu lation and implementation of the monetary policy is the Reserve Bank of Australias (RBAs) main instrument to prevent and manage financial crisis.

The Reserve Bank Act 1959 defines the responsibility of the Reserve Bank of Australias (RBAs) monetary policy to be; the stability of the coin of Australia; maintenance of well(p) employment in Australia; and the economic prosperity and social welfare of the people of Australia. (www.rba.gov.au, 2011) The Reserve Bank of Australia (RBA) works to suffer hale financial systems to contribute to economic growth ordered with first inflation. (Hunt & Terry, 2010) The Reserve Bank of Australia (RBA) manages inflation with the use of a su bstitute(prenominal) management instrument; ! the currency prise. The Reserve Bank of Australias (RBAs) target inflation rate is 2-3% (www.rba.gov.au, 2011) This rate is the applicable divert rate for overnight loans between financial institutions. The Reserve Bank of Australia (RBA) trades in the money market daily and adjusts the cash rate according;...If you want to get a full essay, order it on our website: OrderEssay.net

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