When the Bank of Canada wants to raise the real interest rate in Canada, it announces a ________
Overnight rate target (and the entire ± 0.25 percentage point operating band around the overnight rate target shifts ______). In response, the commercial banks ________ the market interest rates, particularly, the short term rates, by a similar amount.

Question

Quizplus · Accepted Answer

When the Bank of Canada wants to raise the real interest rate in Canada, it announces a ________
Overnight rate target (and the entire ± 0.25 percentage point operating band around the overnight rate target shifts ______) . In response, the commercial banks ________ the market interest rates, particularly, the short term rates, by a similar amount.

When the Bank of Canada Wants to Raise the Real