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When Does the Bank of Canada Make a Loan to a Commercial

Question 103

Multiple Choice

When does the Bank of Canada make a loan to a commercial bank?


A) If the bank doesn't have deposit insurance.
B) If the bank is experiencing a liquidity problem.
C) If the bank has high profits.
D) If the bank is willing to pay an interest rate above the prime rate.
E) The Bank of Canada doesn't loan money to commercial banks.

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