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© 2014 Pearson Canada Inc.#
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
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
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
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