In recent years, the Bank of Canada has conducted policy by setting a target for which of the following?
A)bank reserves
B)the monetary growth rate
C)the exchange rate
D)the bank rate

Question

Quizplus · Accepted Answer

In recent years, the Bank of Canada has conducted monetary policy by setting a target for the overnight bank rate, which is the interest rate that banks charge each other for short-term loans. This rate influences borrowing and lending rates throughout the economy and can have an impact on inflation and economic growth. The bank does not set targets for bank reserves, the monetary growth rate, or the exchange rate.

In Recent Years, the Bank of Canada Has Conducted Policy