Which of the following statements regarding RBA’s responsibilities is correct?

Question

BlackTom AI · Accepted Answer

The question asks which statement about RBA’s responsibilities is correct, and provides four options to evaluate.
Option a: Licensing and monitoring financial markets, the payment system and the stability of the financial system. While the RBA is involved in aspects of payment systems and financial stability, licensing and monitoring financial markets typically falls under a separate regulatory agency rather than the central bank’s core mandate. This makes option a partially inaccurate as stated.
Option b: The monetary policy, payment system, and licensing and monitoring of financial markets. This mixes central banking functions (monetary policy and payment systems) with regulatory activities (licensing and monitoring of financial markets) that are usually outside the RBA’s primary remit, rendering the claim inaccurate as a whole.
Option c: None of the above. Given that option d is presented as a correct statement in the list, selecting none would be inconsistent with the provided correct option, making this choice incorrect.
Option d: The monetary policy, payment system and stability of the financial system. This aligns with the core, well-established responsibilities of a central bank: setting monetary policy, overseeing the payments system to ensure smooth functioning, and safeguarding financial system stability. The phrasing matches the central banking role without overreaching into regulatory licensing tasks, which are typically shared with or assigned to other authorities. 
In sum, options a and b misstate the scope by either misallocating licensing/monitoring or by mixing regulatory powers with central banking duties; option c contradicts the presence of option d. Option d correctly captures the fundamental responsibilities typically attributed to the central bank, namely monetary policy, payments infrastructure, and financial system stability.

Which of the following statements regarding RBA’s responsibilities is correct?

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