The Bank of Montreal needs to borrow $4 million from the TD-Canada Trust overnight. The rate that BOM will have to pay for this loan is called the __________ rate.

Question

Quizplus · Accepted Answer

The question specifically states that the loan is overnight, which means it will be paid back within 24 hours. The rate that BOM will have to pay for this type of short-term borrowing is called the overnight rate. Therefore, the correct answer is C) Overnight. The other options (money market, bank, prime, and treasury) may also be types of interest rates, but they do not accurately describe the specific rate needed in this scenario.

The Bank of Montreal Needs to Borrow $4 Million from the TD-Canada