Which transactions are included under reserve assets?

The selection indicating that transactions related to the Reserve Bank of Australia are included under reserve assets is correct because reserve assets primarily consist of foreign currency and gold reserves held by central banks, such as the Reserve Bank of Australia. These assets are crucial for managing a country’s exchange rate, ensuring liquidity in international markets, and facilitating the payment of international obligations.

Additionally, transactions involving the Reserve Bank encompass foreign investment activities, international reserves, and other financial instruments that ascertain a country's capacity to meet its international payment obligations. This focus on reserve assets highlights their role in stabilizing the economy and responding to external shocks.

In contrast to this, transactions involving imports and exports are more related to trade balances rather than reserve assets. Loans and borrowings from other countries reflect liabilities rather than assets held by the reserve, and net secondary income movements typically account for fiscal transfers and remittances, which do not qualify as reserve assets either. The core essence of reserve assets is their capacity to be liquid and available for immediate use to influence monetary policy and maintain financial stability.