What is the "bank rate"?

Question

Quizplus · Accepted Answer

The bank rate is the interest rate at which the Bank of Canada (Canada's central bank) provides short-term loans to commercial banks. This rate influences the interest rates that commercial banks charge their customers for loans and mortgages. Option A is incorrect because the Bank of Canada does not lend funds directly to the Canadian government. Option C is incorrect because the bank rate does not directly affect the interest rates that commercial banks charge their best customers. Option D is incorrect because the Bank of Canada does not accept deposits from commercial banks. Option E is incorrect because a margin requirement refers to the amount of cash or collateral required to be deposited by an investor when using margin to buy securities.

What Is the "Bank Rate