Financial markets today play a significant role in the Australia economy. Financial market is a place where various financial instruments such as securities and bonds are traded. Like other traditional markets, financial markets provide a place for people who have excess funds and people who have the need for these funds to meet and trade. Exchange of funds is done through financial intermediaries. Financial intermediaries are firms that receive the accumulated funds of individuals or …showed first 75 words of 1079 total…

…showed last 75 words of 1079 total…policy to influence the Australian economy. In conclusion, the Australian financial market is a dynamic market place which requires prudential regulation. Both the Commonwealth Government and other regulatory authorities have the responsibilities to oversee this market. Among these authorities, the RBA is the most important and powerful one. With its unique DMO, it can influence the entire economy. The continuous economic expansion in Australia would be partly credited to the successful policies of the RBA.