the economics of money, banking, and financial markets

512 #

© 2014 Pearson Canada Inc.#

25. 
    

    If the Bank of Canada pays on deposits to LVTS participants an interest rate of 3.5 percent
    then the bank rate is ____.
    A) 4 percent
    B) 3.75 percent
    C) 3.25 percent
    D) 4.5 percent
    Answer: A
    Diff: 2 Type: MC Page Ref: 406
    Skill: Applied
    Objective List: 17.1 Characterize the framework for the implementation of monetary policy in
    Canada

    
    


26. 
    

    If the Bank of Canada pays on deposits to LVTS participants an interest rate of 3.5 percent
    then the operating target of the Bank's monetary policy is ____.
    A) 3.75 percent
    B) 4 percent
    C) 3.25 percent
    D) 3 percent
    Answer: A
    Diff: 2 Type: MC Page Ref: 406
    Skill: Applied
    Objective List: 17.1 Characterize the framework for the implementation of monetary policy in
    Canada

    
    


27. 
    

    If the Bank of Canada pays on deposits to LVTS participants an interest rate of 3.5 percent
    then the operating target of the Bank's monetary policy is ____ and the bank rate is
    ____.
    A) 3.75 percent; 4 percent
    B) 4 percent; 4.25 percent
    C) 3.25 percent; 3.5 percent
    D) 3 percent; 3.25
    Answer: A
    Diff: 3 Type: MC Page Ref: 406
    Skill: Applied
    Objective List: 17.1 Characterize the framework for the implementation of monetary policy in
    Canada