The bank rate is the interest rate the Bank of Canada charges on loans to:

Question

Quizplus · Accepted Answer

The Bank rate is the interest rate charged by the central bank to commercial banks for the lending of funds. This rate can affect loans and credit facilities offered to consumers, but it is not directly charged to them. Similarly, provincial governments do not borrow directly from the Bank of Canada, and while the federal government can borrow from the Bank of Canada, they typically do so at the overnight rate, not the bank rate. Therefore, the correct option is D - banks.

The Bank Rate Is the Interest Rate the Bank of Canada