The Bank Rate Is the Rate of Interest at Which

question 25

Multiple Choice

The bank rate is the rate of interest at which

• A)chartered banks lend to large corporations.
• B)the Bank of Canada lends to large corporations.
• C)savings and loan associations lend to home builders.
• D)the Bank of Canada lends to chartered banks.

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Definitions:

Bonds Issuance

Bonds issuance is the process by which a corporation or government raises capital by selling bonds to investors, which then are obligated to pay back with interest at a later date.

Bond Sale

The process of issuing bonds to investors, generally to raise capital for a corporation or government.

Bonds

Long-term debt instruments issued by corporations, governments, or other entities to finance their operations, projects, or expansions, which pay periodic interest and return the principal at maturity.

Stockholders' Equity

Represents the portion of the total value of a company that is owned by its shareholders.