Discuss how financial markets in Australia are regulated by the Reserve bank of Australia, the Australian Prudential Regulation Authority and the Australian Securities and Investments Commission.

Financial marketplaces are an important component of Australias economy. They provide a retrogress for those who have extra income, while at the resembling sequence making loans available those who need additional funds. They committle completely other industries because of their key role in the economy. To defend the overall economy and the individual areas, there are tether study regulators of fiscal markets; RBA, APRA, and ASIC. RBA The Reserve intrust of Australia is one of the roughly important regulators of financial markets. It is the central bank of Australia, and it is not set up for financial profit. Its purpose is to manage the financial sector accord to three objectives set by the Reserve Bank direct - stablility of Australias cash, maintenance of full employment and the economic prosperity and eudaemonia of the people of Australia. The RBA plays significant roles in regulating the financial market by conducting monetary policy on behalf of the govern ment; general stability; control of note issue; decree of the payments dust; banker to the banks; responsibility for holding Australias reserves of gold and distant currency dealings; banker and source of financial and economic advice to governments. In vernal-fashioned years, its major aim has been to sustain low inflation. The RBA influences inflation by undertaking DMOs, or Domestic Market operations.

This is the mechanism in which the RBA controls the interest rates and thereby influences the rate of inflation. The RBA either purchases or sells Government securities, which leads to the consumer selling of their previous securities or buying bare-ass ones. If the consumer purchas es new securities, this action reduces the a! mount of money in the M3, jumper lead to a movement to the left in the supply wind of money, raising the equilibrium level of interest rates. The opposite happens when the consumer sells murder their... If you want to get a full essay, order it on our website: OrderEssay.net

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