Assignment Help:Discuss how the Reserve Bank of Australia (RBA) conducts liquidity management.

Assignment Help:Discuss how the Reserve Bank of Australia (RBA) conducts liquidity management.

Zeta Ltd is located in Australia and is a subsidiary of its parent company located in Asia. During October 2016 Zeta Ltd conducted the following finance transactions. • 5 th October – Issue four 90 day promissory notes, each of which has a face value of $200,000 and pays 10% interest per annum. • 20th October – Sign a contract with the Australian local bank to borrow $0.4 million cash for delivery on 1 May 2017, at a fixed interest rate of 7.5% per annum.

The loan will be used to purchase foreign currency to settle an account payable on 1 February 2017. • 28th October – Issue 500,000 ordinary shares at $5 per share. For each of the above transactions, discuss the relevant financial institution, financial market and financial function

Discuss how the Reserve Bank of Australia (RBA) conducts liquidity management.

Your response should refer to the impact of RBA payments on the financial system’s liquidity.