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au_104
Australia and its People › Society
What is the Reserve Bank of Australia?
- Australia's central bank, responsible for monetary policy, financial stability and issuing currency
- A government savings bank for low-income Australians
- A bank owned by the four major Australian banks
Why this is the correct answer
As Australia's central bank, the Reserve Bank sets the official interest rate that influences borrowing costs across the economy, aiming to keep inflation under control. It also issues and manages Australian banknotes and works to maintain a stable financial system.