The target for the overnight interest rate is also known as the ________.
A) the bank rate
B) the policy rate
C) reference rate
D) the growth rate of M2

Question

Quizplus · Accepted Answer

The overnight interest rate target is also known as the policy rate, which is the key rate set by the central bank to influence other interest rates in the economy. A) The bank rate may refer to the interest rate charged by a central bank on loans to commercial banks or the interest rate at which banks can borrow or lend to each other in the interbank market. C) The reference rate may refer to a benchmark interest rate used for various financial products, such as mortgages or corporate loans, but it is not specific to the central bank's policy rate. D) The growth rate of M2 refers to the increase in the money supply, which may be affected by the central bank's monetary policy but is not the same as the policy rate.

The Target for the Overnight Interest Rate Is Also Known