Under its current operating procedure, the Bank of Canada implements monetary policy by announcing a target for the ________ (the official interest rate) , and then intervenes (if necessary) in the _______ in order to maintain this rate within a _______ percentage points operating band.
A) overnight market rate; overnight loan market; ± 0.50
B) prime rate; money markets; ± 0.25
C) overnight market rate; money markets; ± 0.25
D) overnight market rate; overnight loan market; ± 0.25
Correct Answer:
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