Question 1

Describe the daily timetable for RTGS settlements.

Accepted Answer

The daily RTGS sessions are:
An early mo...

Question 2

The account that a financial institution has with the RBA is known as a(n) :

Accepted Answer

A)  fund settlement account
B)  money settlement account
C)  payment settlement account
D)  exchange settlement account.
E)  None of these.F) C) and E)
G) D) and E)

Question 3

The clearing of retail payment orders refers to the actual payment of exchange settlement (ES)funds.

Accepted Answer

A) True 
 B)False

Question 4

What is the impact of RBA payments on the financial system's liquidity and how is this managed?

Accepted Answer

Transactions made by or to the RBA when ...

Question 5

Which of the following is a retail payment order but is not settled using DNS?

Accepted Answer

A)  Cash.
B)  Cheques.
C)  Debit cards.
D)  Charge cards.
E)  Direct entries.F) B) and E)
G) A) and B)

Question 6

List and describe the main types of retail payment instruments.

Accepted Answer

Retail payment instruments include cash ...

Question 7

We are fast becoming a 'cashless society'.

Accepted Answer

A) True 
 B)False

Question 8

Banks in Australia are subject to a reserve requirement.

Accepted Answer

A) True 
 B)False

Question 9

Contagion (within the payments system) is NOT:

Accepted Answer

A)  likely
B)  serious
C)  the collapse of the payments system
D)  less likely because of RTGS
E)  potentially devastating to the economy.F) C) and E)
G) B) and D)

Question 10

Explain the Payments System Board's planned innovations to the retail payment system.

Accepted Answer

The PSB aims to replace DNS with a faste...

Question 11

Clearly explain how RTGS settles financial markets transactions.

Accepted Answer

Payment instructions are received from S...

Question 12

Explain how the RBA helps ADIs manage periods of intraday illiquidity.

Accepted Answer

Two mechanisms are available to ADIs pro...

Question 13

The very large number of retail payment orders:

Accepted Answer

A)  exposes receiving institutions to significant settlement risk
B)  includes cash, cheques and EFTPOS
C)  are netted, which greatly reduces the settlement amounts
D)  are settled on a same-day basis.
E)  All of these.F) C) and D)
G) B) and C)

Question 14

Which retail payment order displays a very high number of transactions but relatively low total value of transactions?

Accepted Answer

A)  Cash.
B)  Cheques.
C)  Credit and debit cards.
D)  Direct debits.
E)  Direct credits.F) B) and C)
G) C) and D)

Question 15

Describe Australia's wholesale payment system.

Accepted Answer

Australia's wholesale payment system is ...

Question 16

Assume that there are three banks in Australia: Alpha, Beta and Delta.On a particular day:  Use the following grid to determine the banks multilateral net obligations to the system on this day.

Accepted Answer

<img  loading="lazy" src="/assets/images/blured-textbook.svg" class="d-inline m-1" alt="blured image" width="139" height="30"> Alpha will have to pay $28, a...

Question 17

Planned changes to the settlement of retail payments will place additional liquidity pressures on ADIs.The RBA plans to help ADIs cope through:

Accepted Answer

A)  increasing the interest rate on ESA balances
B)  increasing the interest rate in the overnight inter-bank market
C)  intraday repos
D)  open repos
E)  requiring a liquidity reserve.F) B) and E)
G) A) and D)

Question 18

RTGS clears payments and then places them in a queue for settlement.

Accepted Answer

A) True 
 B)False

Question 19

Which retail payment mechanism has experienced the most dramatic decline in usage?

Accepted Answer

A)  Cash.
B)  Cheques.
C)  Credit cards.
D)  Debit cards.
E)  Direct entry.F) B) and E)
G) A) and D)

Question 20

Which of the following would put downward pressure on the cash rate?

Accepted Answer

A)  Payments between ADIs.
B)  Sales of securities by the RBA to ADIs.
C)  Payments of taxation from ADIs to the RBA.
D)  Welfare payments by the RBA (on behalf of the government) to ADIs.
E)  All of these.F) C) and D)
G) B) and C)

Exam 2: The Payments System

We are fast becoming a 'cashless society'.

Correct AnswerverifiedShow Answer

Explain the Payments System Board's planned innovations to the retail payment system.

Correct AnswerverifiedThe PSB aims to replace DNS with a faste...View AnswerShow Answer

The clearing of retail payment orders refers to the actual payment of exchange settlement (ES)funds.

Correct AnswerverifiedShow Answer

Which of the following is a retail payment order but is not settled using DNS?

Correct AnswerverifiedShow Answer

Which of the following would put downward pressure on the cash rate?

Correct AnswerverifiedShow Answer

Describe the daily timetable for RTGS settlements.

Correct AnswerverifiedThe daily RTGS sessions are:An early mo...View AnswerShow Answer

The very large number of retail payment orders:

Correct AnswerverifiedShow Answer

Banks in Australia are subject to a reserve requirement.

Correct AnswerverifiedShow Answer

Assume that there are three banks in Australia: Alpha, Beta and Delta.On a particular day: Use the following grid to determine the banks multilateral net obligations to the system on this day.

Correct Answerverified Alpha will have to pay $28, a...View AnswerShow Answer

Clearly explain how RTGS settles financial markets transactions.

Correct AnswerverifiedPayment instructions are received from S...View AnswerShow Answer

Contagion (within the payments system) is NOT:

Correct AnswerverifiedShow Answer

Describe Australia's wholesale payment system.

Correct AnswerAnswered by ExamLex AIAustralia's wholesale payment system is ...View AnswerShow Answer

The account that a financial institution has with the RBA is known as a(n) :

Correct AnswerverifiedShow Answer

What is the impact of RBA payments on the financial system's liquidity and how is this managed?

Correct AnswerverifiedTransactions made by or to the RBA when ...View AnswerShow Answer

Planned changes to the settlement of retail payments will place additional liquidity pressures on ADIs.The RBA plans to help ADIs cope through:

Correct AnswerverifiedShow Answer

Explain how the RBA helps ADIs manage periods of intraday illiquidity.

Correct AnswerverifiedTwo mechanisms are available to ADIs pro...View AnswerShow Answer

Which retail payment order displays a very high number of transactions but relatively low total value of transactions?

Correct AnswerverifiedShow Answer

Which retail payment mechanism has experienced the most dramatic decline in usage?

Correct AnswerverifiedShow Answer

RTGS clears payments and then places them in a queue for settlement.

Correct AnswerverifiedShow Answer

List and describe the main types of retail payment instruments.

Correct AnswerverifiedRetail payment instruments include cash ...View AnswerShow Answer

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The PSB aims to replace DNS with a faste...
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The daily RTGS sessions are:
An early mo...
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Alpha will have to pay $28, a...
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Payment instructions are received from S...
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Answered by ExamLex AI
Australia's wholesale payment system is ...
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Transactions made by or to the RBA when ...
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Two mechanisms are available to ADIs pro...
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Correct Answer
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Correct Answer
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Retail payment instruments include cash ...
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