The interest rate at which the Bank of Canada lends to chartered banks is called:
A)the prime rate.
B)the short-term rate.
C)the bank rate.
D)the government bonds rate.

Question

Quizplus · Accepted Answer

The interest rate at which the Bank of Canada lends to chartered banks is called the bank rate. The prime rate is the interest rate that commercial banks charge their most creditworthy customers, while the short-term rate refers to the interest rate on short-term loans. The government bonds rate is the interest rate at which the government issues bonds.

The Interest Rate at Which the Bank of Canada Lends