How does the Bank of Canada set the bank rate?
A) The Bank of Canada does not determine the bank rate.
B) The bank rate is set at a quarter percentage point above the prime lending rate.
C) The bank rate is set at a quarter percentage point above the target overnight loans rate.
D) The bank rate is set at a quarter percentage point below the overnight loans rate.
E) The bank rate is set at 25 basis points above the operating band.
Correct Answer:
Verified
Q26: An open market operation
A)refers to the Bank
Q27: Choose the statement that is incorrect.
A)The Bank
Q28: The overnight loans rate is the interest
Q29: If the overnight rate is below target,
Q30: If the overnight rate is above target,
Q32: If the Bank of Canada buys government
Q33: The sale of government bonds by the
Q34: The overnight rate is determined by equilibrium
Q35: The current overnight loans rate is 3
Q36: Choose the statement that is incorrect.
A)The Bank
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents