Interest rates charged to healthy banks that borrow from the Bank of Canada are typically set one percent below the fed funds target interest rate.

Question

Quizplus · Accepted Answer

The interest rates charged to banks by the Bank of Canada are not set based on the U.S. Federal Reserve's fed funds target rate. Each central bank sets its own rates independently based on its country's economic conditions.

Interest Rates Charged to Healthy Banks That Borrow from the Bank