What Is the "Bank Rate

question 34

Multiple Choice

What is the "bank rate"?

• A)The interest rate at which the Bank of Canada will lend funds to the Canadian government.
• B)The interest rate at which the Bank of Canada will lend funds to commercial banks.
• C)The interest rate that commercial banks charge their best customers.
• D)The interest rate that the Bank of Canada pays on deposits from the commercial banks.
• E)It is the same as a margin requirement.

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Definitions:

Inelastic Demand Curve

Represents a situation where the demand for a product changes by a smaller percentage than changes in its price, indicating consumers' insensitivity to price changes.

Perfectly Elastic

A situation where the demand or supply for a product is infinitely responsive to changes in price, shown as a horizontal line on a graph.

Loanable Funds

A concept in economics that describes the market where savers supply funds for loans to borrowers.

Free-Land Era

A historical period characterized by the availability and acquisition of land at little to no cost, usually to promote settlement and development.