Choose the Statement That Is Incorrect

question 60

Multiple Choice

Choose the statement that is incorrect.

• A)From 2009 to 2018, the overnight loans rate was at historically low levels because the Bank wanted to lean in the direction of avoiding recession.
• B)The Bank of Canada's choice of policy instrument is the overnight loans rate.
• C)When the Bank of Canada wants to slow inflation, it raises the overnight loans rate.
• D)The Bank of Canada normally changes the overnight loans rate by 25 basis points.
• E)The Bank has established 12 fixed dates each year on which it announces its overnight rate target for the coming period.

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Definitions:

Sample Mean

The average value calculated from a sample of data, used as an estimate of the population mean.

Normally Distributed

Describes a distribution that follows a normal curve or bell curve, where most observations cluster around the central peak and the probabilities for values further away from the mean taper off equally in both directions.

Sampling Distribution

The distribution pattern of probabilities for a specified statistic obtained from a random sample.

Normally Distributed

A data distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence than data far from the mean.