The Reserve Bank, the central bank of Australia, has a significant effect on our individual lives as well as on the national and international banking system. In the process of carrying out monetary policy, the Reserve Bank influences employment, interest rates, the availability of credit, and even our standard of living. A remark by the chairman of the board of Governors of the Reserve Bank can cause public reaction and affect the stock market worldwide. (W S Weerasooria, 1996, p61) In recent years, the Reserve Bank has taken on an increasingly larger role in the financial system.
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