f) The experience of the Global Financial Crisis has made policymakers vigilant about ensuring the stability of the financial system and avoiding a repeat of the GFC during the shock of COVID-19 pandemic. Choose one of the following policies as an example of prudential regulation and explain how it contributes to the stability of the financial system. (2 sentences) Policy #1 The decision made by the Board of the Reserve Bank of Australia to lift the cash rate to prevent runaway inflation Policy #2 Deregulation of the financial market which introduced a floating exchange rate Policy #3 The tightening of lending limits on commercial banks and the requirement that all commercial banks hold an Exchange Settlement account with the Central Bank