It Is Mainly Through The______ That the Bank of Canada's

question 18

Multiple Choice

It is mainly through the______ that the Bank of Canada's key policy rate influences interest rates and the exchange rate.

• A)stock brokers
• B)overnight rate
• C)prime lending rate
• D)financial markets

---

Definitions:

Federal Government Budget Deficit

The financial situation that occurs when a government's expenditures exceed its revenues in a fiscal year.

Interest Rates

The charges levied by lenders on borrowers for the privilege of using the lender's money, expressed as a proportion of the borrowed amount per unit of time.

U.S. Dollar

The official currency of the United States, which serves as a major reserve currency and is used in many international transactions.

Federal Budget Surplus

A financial situation where the government's revenue exceeds its expenditures within a fiscal year.