'Smoothing' occurs when the RBA is trying to:
A) reduce excessive fluctuations in the Australian dollar.
B) maintain the Australian dollar at its agreed fixed rate.
C) see whether movement in the value of the currency is real or speculative.
D) smooth the market.

Question

Quizplus · Accepted Answer

Smoothing refers to the RBA's efforts to reduce excessive fluctuations in the Australian dollar. This is done in order to promote stability and predictability in the economy.

'Smoothing' Occurs When the RBA Is Trying To