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© 2014 Pearson Canada Inc.#
The Automated Clearing Settlement System (ACSS) ____.
A) was introduced on February 4, 1999
B) is an electronic net settlement network designed to provide settlement to wholesale
transactions
C) aggregates interbank payments and informs the Bank of Canada of the net amounts to be
transferred from and to each participant's settlement account with the Bank of Canada
D) Only A and B of the above.
Answer: C
Diff: 1 Type: MC Page Ref: 405
Skill: Recall
Objective List: 17.1 Characterize the framework for the implementation of monetary policy in
Canada
The overnight market in Canada is ____ with a ____ range of participants.
A) very liquid; broad
B) very liquid; narrow
C) not very liquid; broad
D) not very liquid; narrow
Answer: A
Diff: 2 Type: MC Page Ref: 405
Skill: Recall
Objective List: 17.1 Characterize the framework for the implementation of monetary policy in
Canada
The overnight interest rate is also known as the ____.
A) the bank rate
B) the policy rate
C) reference rate
D) the growth rate of M2
Answer: C
Diff: 1 Type: MC Page Ref: 405
Skill: Recall
Objective List: 17.1 Characterize the framework for the implementation of monetary policy in
Canada
The target for the overnight interest rate is also known as the ____.
A) the bank rate
B) the policy rate
C) reference rate
D) the growth rate of M2
Answer: B
Diff: 1 Type: MC Page Ref: 405
Skill: Recall
Objective List: 17.1 Characterize the framework for the implementation of monetary policy in
Canada