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The Bank of Canada's Official Interest Rate Policy Instrument Is

Question 66

Multiple Choice

The Bank of Canada's official interest rate policy instrument is the _______. This is the interest rate that prevails in the _______, and the rate at which commercial banks lend and borrow _______ funds from each other.


A) overnight rate target; overnight loans market; overnight
B) prime rate; money markets; short term
C) overnight rate target; money markets; long term
D) prime rate; overnight loans market; long term

Correct Answer:

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