The volume of loans that the Bank of Canada makes to banks is affected by the Bank's setting of the interest rate on these loans, called the ________.

Question

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The Bank of Canada sets the bank rate, which is the interest rate charged by the Bank of Canada on loans to commercial banks. This rate affects the volume of loans that the Bank of Canada lends to these banks. The overnight rate is the interest rate at which banks can lend or borrow money from each other overnight, while the prime rate is the interest rate that commercial banks charge their most creditworthy customers. The interbank rate is the rate at which banks lend to each other.

The Volume of Loans That the Bank of Canada Makes