512 #
© 2014 Pearson Canada Inc.#
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
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
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