Zeta Ltd is located in Australia and is a subsidiary of its parent company located in Asia. During October 2016 Zeta Ltd conducted the following finance transactions. 5 th October - Issue four 90 day promissory notes, each of which has a face value of $200,000 and pays 10% interest per annum. 20th October - Sign a contract with the Australian local bank to borrow $0.4 million cash for delivery on 1 May 2017, at a fixed interest rate of 7.5% per annum. The loan will be used to purchase foreign currency to settle an account payable on 1 February 2017. 28th October - Issue 500,000 ordinary shares at $5 per share. For each of the above transactions, discuss the relevant financial institution, financial market and financial function.

(Question 1 b) Discuss how the Reserve Bank of Australia (RBA) conducts liquidity management. Your response should refer to the impact of RBA payments on the financial systems liquidity.