Which of the following is NOT a reason why the RBA intervenes in the foreign exchange market?
A) to prevent exchange rate overshooting
B) to calm the market when it becomes disorderly
C) to keep the exchange rate within a policy-determined range
D) to give monetary policy greater room to manoeuvre

Question

Quizplus · Accepted Answer

The Reserve Bank of Australia (RBA) does not aim to keep the exchange rate within a policy-determined range as its primary intervention strategy. The RBA's interventions are typically aimed at smoothing out volatility and preventing disorderly market conditions, rather than maintaining the exchange rate within a specific target range.

Which of the Following Is NOT a Reason Why the RBA