In 2004, the Bank of Canada Reduced the Overnight Rate

question 141

Multiple Choice

In 2004, the Bank of Canada reduced the overnight rate to as low as:

• A)4 percent, in an effort to slow down the economy.
• B)2 percent, in an effort to slow down the growth of the economy.
• C)2 percent, in an effort to stimulate the economy.
• D)3 percent, in an effort to stimulate the economy.

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Definitions:

Flooding

Flooding is a psychological treatment method for phobias and anxiety disorders where an individual is exposed to an overwhelming amount of the feared stimulus in order to extinguish the fear response.

Hypochondriasis

A condition characterized by an excessive preoccupation with the fear of having a serious disease.

Childhood Repression

A defense mechanism identified by psychoanalytic theory, where unpleasant childhood memories are unconsciously blocked out as a protective measure.

Aversive Conditioning

A form of behavior modification that involves using unpleasant stimuli to discourage undesirable behaviors.