How Does the Bank of Canada Communicate Its Target for the Overnight

question 62

Multiple Choice

How does the Bank of Canada communicate its target for the overnight interest rate to the public?

• A)monthly announcements at fixed announcement dates (FADs)
• B)in its quarterly publication,"Monetary Policy Report"
• C)announcements made 8 times per year at pre-specified fixed announcement dates (FADs)
• D)The target is communicated to the minister of finance for approval and then released to the public on a quarterly basis.
• E)The target is communicated to the Prime Minister for approval and then released to the public at 8 pre-specified fixed announcement dates (FADs).

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Definitions:

Attention Recovery

The process by which an individual's cognitive focus and alertness are restored after periods of stress or mental fatigue, often through engagement with restorative environments or activities.

Violation-of-expectations

A research method used in developmental psychology to study infants' understanding of the world by observing their reactions to unexpected events.

Perceptual Awareness

The ability to become aware of one's environment and internal states through sensory input, such as sight, sound, and touch.

Conceptual

Pertaining to concepts or ideas; involving the use of the mind to understand, categorize, or define something.