When the Bank of Canada speaks about interest rates, people listen. This principle is known as:
A) politicization.
B) puffery.
C) authority.
D) consistency.

Question

Quizplus · Accepted Answer

The principle is known as "authority." When a respected institution like the Bank of Canada speaks about interest rates, its authority on financial matters makes people pay attention. Authority refers to the power or right to give orders, make decisions, and enforce obedience, and in this context, it implies that the institution's expertise and role in the economy give its statements significant influence.

When the Bank of Canada Speaks About Interest Rates, People