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The Bank of Canada Is Said to Be the "Lender

Question 10

Multiple Choice

The Bank of Canada is said to be the "lender of last resort" in that


A) it stands ready to "bail out" any chartered bank that it has decided should not fail.
B) it makes loans to individuals whom commercial banks do not believe are credit-worthy.
C) it charges a higher interest rate to borrowers than does any other bank.
D) it functions as the government's bank only when commercial banks fail to do so.

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