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© 2014 Pearson Canada Inc.#
The primary indicator of the stance of monetary policy in the U.S. is the ____.
A) federal funds rate
B) discount rate
C) overnight rate
D) prime rate
Answer: A
Diff: 1 Type: MC Page Ref: 429
Skill: Recall
Objective List: 17.3 Identify the Bank of Canada's approach to monetary policy and the tools of
policy
The European Central bank uses the ____ to signal its stance on monetary policy.
A) target financing rate
B) overnight cash rate
C) overnight bank rate
D) discount window
Answer: A
Diff: 1 Type: MC Page Ref: 433
Skill: Recall
Objective List: 17.3 Identify the Bank of Canada's approach to monetary policy and the tools of
policy