When Injecting Reserves in the Banking System Through a Repurchase

question 22

Multiple Choice

When injecting reserves in the banking system through a repurchase agreement the Reserve Bank of Australia (RBA) :

• A)buys specific types of securities from the ESA holders on the basis that the RBA will resell them back to them later.
• B)sells specific types of securities to the ESA holders on the basis that the RBA will repurchase them back later.
• C)buys and sells securities in the market on behalf of ESA holders.
• D)buys and keeps specific types of securities in its portfolio for unspecified horizon.

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Definitions:

Task Forces

Temporary groups established to achieve specific goals or tackle particular problems, drawing members from various departments or skill areas.

Key Problems

Major or central issues that significantly impact an entity or situation, often requiring focused efforts and resources to solve.

Committees

Groups of individuals brought together to perform a specific task or to deliberate on particular issues within an organization.

Cross-functional Teams

Teams composed of members from different departments or areas of expertise, working together towards a common goal.