Choose the Statement That Is Incorrect

question 6

Multiple Choice

Choose the statement that is incorrect.

• A)The Bank of Canada's choice of policy instrument is the overnight loans rate.
• B)When the Bank of Canada wants to slow inflation, it raises the overnight loans rate.
• C)The Bank has established 12 fixed dates each year on which it announces its overnight rate target for the coming period.
• D)Recently, the overnight loans rate has been at historically low levels because the Bank is leaning in the direction of avoiding recession.
• E)The overnight rate was a bit more than 8 percent a year in 1995.

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Definitions:

Bullwhip Measure

A metric that quantifies the increase in variability or fluctuations in order and inventory levels observed as one moves up the supply chain from retailers towards manufacturers.

Supply Chain

The network of manufacturers, suppliers, and logistics providers involved in producing and delivering a product to the end user.

Variance

A statistical measure of the dispersion showing how much the values in a data set diverge from the mean or expected value.

Wholesaler

A person or company that buys goods in large quantities from producers and sells them in smaller quantities to retailers or other wholesalers.