The Reason for the Bank of Canada to Have a Range

question 46

True/False

The reason for the Bank of Canada to have a range for its inflation targeting is that some of the components of the CPI, fluctuate a lot.

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Definitions:

Accounts Receivable

An asset account on the balance sheet that represents money owed to a company by customers for goods or services that have been delivered or used but not yet paid for.

Accounts Payable

Liabilities to creditors that are to be paid within a short period of time, typically within one year.

Revenue

The whole sum of profit generated by a company through the selling of services or goods pertinent to its primary business functions.

Telephone Bill

A statement of charges for voice or data services provided by a telecommunications company.