Which statement best explains the role of the Bank of Canada?
A) It maintains a target exchange rate.
B) It determines the bank rate.
C) It makes loans to large corporations.
D) It controls the government budget deficit.

Question

Quizplus · Accepted Answer

The Bank of Canada determines the bank rate, which is the interest rate that banks use to borrow and lend money to each other. This rate influences the overall level of interest rates in the economy and can be used to control inflation and economic growth. The other options (A, C, and D) are not accurate descriptions of the Bank of Canada's role.

Which Statement Best Explains the Role of the Bank of Canada