the economics of money, banking, and financial markets

510 #

© 2014 Pearson Canada Inc.#

17. 
    

    The primary indicator of the Bank of Canada's stance on monetary policy is ____.
    A) the bank rate
    B) the overnight rate
    C) the growth rate of the monetary base
    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

    
    


18. 
    

    The overnight rate is important because it is ____.
    A) the primary indicator of the Bank of Canada's stance on monetary policy
    B) the interest rate paid on federal debt
    C) the interest rate charged on government loans
    D) Both A and C of the above.
    Answer: A
    Diff: 1 Type: MC Page Ref: 405
    Skill: Recall
    Objective List: 17.1 Characterize the framework for the implementation of monetary policy in
    Canada

    
    


19. 
    

    45 basis points is equal to ____.
    A) 0.45 percent
    B) 0.045 percent
    C) 4.5 percent
    D) 45 percent
    Answer: A
    Diff: 1 Type: MC Page Ref: 406
    Skill: Applied
    Objective List: 17.1 Characterize the framework for the implementation of monetary policy in
    Canada

    
    


20. 
    

    Changes to the operating band are announced by the Bank of Canada ____ times a year.
    A) eight
    B) six
    C) four
    D) two
    Answer: A
    Diff: 1 Type: MC Page Ref: 406
    Skill: Recall
    Objective List: 17.1 Characterize the framework for the implementation of monetary policy in
    Canada