Which of the following is a monetary tool of the Bank of Canada?
A) STRIPS.
B) The bellwether rate.
C) The call money rate.
D) The bank rate.
E) The Treasury bill rate.

Question

Quizplus · Accepted Answer

The Bank of Canada uses the bank rate as a monetary tool to influence the interest rates that commercial banks charge each other for overnight loans. The bank rate is also referred to as the overnight rate or the policy rate. The other options listed are financial instruments or interest rates, but they are not specifically used as monetary tools by the Bank of Canada.

Which of the Following Is a Monetary Tool of the Bank