The interest rate at which the Bank of Canada makes short-term loans to member banks is called the ______.

Question

Quizplus · Accepted Answer

The interest rate at which the Bank of Canada loans money to member banks is called the discount rate. The Federal Funds Rate is the interest rate at which banks lend to each other overnight. The margin rate is the percentage of the purchase price of securities that must be covered by cash or collateral when buying on margin. The reserve requirement is the percentage of deposits that banks must hold in reserve.

The Interest Rate at Which the Bank of Canada Makes