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:

Income Ratios

Financial metrics that compare different aspects of a company's income to its revenues, expenses, or other financial metrics, to assess its profitability.

Liabilities

Financial obligations or debts owed by a business to another entity that are expected to be settled through the transfer of assets, provision of services, or other economic benefit.

Capital Balances

The amount of money that owners have invested in a company plus any retained earnings or minus any losses.

Mutual Agency

A principle in partnership where each partner has the authority to bind the partnership in contract agreements with third parties.