The Reserve Bank of Australia (RBA) directly controls which of the following interest rates?
A)Bankers' acceptances
B)Brokers' call
C)Cash rate
D)LIBOR

Question

Quizplus · Accepted Answer

The RBA directly controls the cash rate, which is the interest rate at which banks can borrow or lend funds overnight to meet their daily requirements. This rate ultimately affects the interest rates that banks offer to their customers for loans and deposits. The other options are not directly controlled by the RBA, as bankers' acceptances and brokers' calls are market-driven rates, and LIBOR is determined by a panel of banks in London.

The Reserve Bank of Australia (RBA) Directly Controls Which of the Following