To Reduce the Overnight Lending Rate, the Bank of Canada

question 146

Multiple Choice

To reduce the overnight lending rate, the Bank of Canada can:

• A)buy government bonds from the chartered banks.
• B)increase the bank rate.
• C)increase the prime interest rate.
• D)sell government bonds to chartered banks.

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Definitions:

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Laws established to control, direct, or manage activities, often implemented by governmental agencies.

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Policies and measures implemented to safeguard the general populace from harm, including health, safety, and welfare concerns.

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