Which of the following best explains the role of the Bank of Canada?
A)It maintains a target exchange rate.
B)It determines the bank rate.
C)It makes loans to large corporations.
D)It controls the government budget deficit.

Question

Quizplus · Accepted Answer

The Bank of Canada is responsible for setting the bank rate, which is the interest rate that other banks must pay when borrowing money from the Bank of Canada. This rate influences other interest rates throughout the economy and is a key tool for controlling inflation and promoting economic growth. The Bank of Canada also plays a role in regulating the financial system and managing the country's monetary policy.

Which of the Following Best Explains the Role of the Bank