_______ is the interest rate that the Bank of Canada charges on short- term loans that it makes to major depository institutions when the banking system is temporarily short of reserves.
A)The Treasury bill rate
B)Bank rate
C)The overnight loans rate
D)Prime
E)The federal funds rate

Question

Quizplus · Accepted Answer

The Bank rate is the interest rate that the Bank of Canada charges on short-term loans to major depository institutions when the banking system is temporarily short of reserves. This rate is usually used as a benchmark for other short-term interest rates in the economy, such as the prime rate, mortgage rates, and consumer loans.

_______ Is the Interest Rate That the Bank of Canada