Which Statement Best Defines the Bank Rate

question 96

Multiple Choice

Which statement best defines the bank rate?

• A) It is the interest rate the Bank of Canada charges banks.
• B) It is one divided by the difference between one and the reserve ratio.
• C) It is the interest rate banks receive on reserve deposits with Bank of Canada.
• D) It is the interest rate that banks charge on overnight loans to other banks.

---

Definitions:

Ego

in Freudian psychology, is the part of the personality that mediates between the instincts and the external world, aiming for a realistic approach to gratification.

Executive Part

The region of the brain, particularly the prefrontal cortex, responsible for higher-order functions such as decision making, problem solving, and impulse control.

Pleasure Principle

A concept in psychoanalytic theory referring to the driver of human behavior to seek immediate gratification of needs and desires.

Schemas

Mental models or cognitive frameworks that assist people in categorizing and understanding information through the lens of previous knowledge and experiences.