A monetary policy target is a variable that the Bank of Canada can affect directly, which then affects one or more of the Bank of Canada's policy goals.

Question

Quizplus · Accepted Answer

A monetary policy target, such as the overnight interest rate, is a variable that the Bank of Canada can directly influence through its policy decisions. By adjusting this target, the Bank can influence economic activity, inflation, and other policy aims.

A Monetary Policy Target Is a Variable That the Bank