Financial markets pay close attention to changes in the overnight rate target because these changes
A) directly affect a large volume of loans.
B) indicate the Bank of Canada's plans for monetary policy.
C) indicate commercial bank lending policies.
D) directly affect the interest payments on the national debt.
E) directly impact consumer interest burdens.

Question

Quizplus · Accepted Answer

Financial markets pay close attention to changes in the overnight rate target because they indicate the Bank of Canada's plans for monetary policy. This information is important for investors to assess the potential impact on inflation, economic growth, and interest rates in the future.

Financial Markets Pay Close Attention to Changes in the Overnight