For purposes of monetary policy, the Bank of Canada has targeted the interest rate known as the

Question

Quizplus · Accepted Answer

The Bank of Canada uses the overnight interest rate as their key policy rate to achieve their inflation target. This interest rate is the rate at which major financial institutions in Canada lend and borrow overnight funds among themselves. By setting a target for this interest rate and adjusting it when necessary, the Bank of Canada can influence borrowing and lending rates throughout the economy, which in turn affects consumer spending, investment, and inflation. Therefore, A is the correct choice.

For Purposes of Monetary Policy, the Bank of Canada Has