If the operating target of the Bank of Canada is 4.5 percent then the bank rate is ________.
A) 4.75 percent
B) 5.25 percent
C) 4.25 percent
D) 4.5 percent

Question

Quizplus · Accepted Answer

The Bank of Canada typically sets the bank rate at a quarter of a percentage point above its operating target to encourage overnight lending among the banks. Therefore, if the operating target is 4.5 percent, the bank rate would be 4.75 percent.

If the Operating Target of the Bank of Canada Is