How can the Bank of Canada use the bank rate to regulate the overnight loans rate?
A) The bank rate is set at the settlement balances rate plus 0.25 percentage points.
B) The bank rate is set at 0.25 percentage points below the settlement balances rate, which is used to determine the overnight loans rate.
C) The bank rate is set at the target overnight rate plus 0.25 percentage points.
D) The overnight loans rate is set at 25 basis points above the bank rate.
E) The overnight loans rate is set at a quarter percentage point above the bank rate, which in turn is set by the Bank of Canada.
Correct Answer:
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Q5: One criticism of the Bank of Canada's
Q6: Which of the following benefits flow from
Q7: Choose the statement that is incorrect.
A)The actual
Q8: Which of the following issues is a
Q9: What is the overnight loans rate?
A)the percentage
Q11: The settlement balances rate is the
A)proportion of
Q12: The operating band is
A)the target inflation rate
Q13: The two parts of the inflation- control
Q14: Why does the Bank of Canada pay
Q15: How is responsibility for monetary policy set
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