Choose the statement that is incorrect.
A)Since late 2000, the Bank has established eight fixed dates on which it announces its overnight loans rate target for the coming period of approximately six weeks.
B)The Bank of Canada's choice of monetary policy instrument is the overnight loans rate.
C)In recent years, the overnight loans rate has been at historically low levels.
D)Although the Bank of Canada can change the overnight rate by any reasonable amount that it chooses, it normally changes the overnight rate by a single percentage point at a time.
E)The Bank sometimes acts in an emergency between normal announcement dates.

Question

Quizplus · Accepted Answer

The Bank of Canada does not normally change the overnight rate by a single percentage point at a time. It typically adjusts it by smaller increments, often in increments of 0.25 percentage points.

Choose the Statement That Is Incorrect