The Overnight Rate Is the Interest Rate That the Bank

question 104

True/False

The overnight rate is the interest rate that the Bank of Canada charges member banks for loans.

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Definitions:

Behavioral Economics

A field of economic research that analyzes how psychological, social, cognitive, and emotional factors affect economic decisions of individuals and institutions.

Ultimatum Games

A type of game in experimental economics where two players interact to decide how to divide a sum of money; one proposes the split, and the other accepts or rejects it.

Endowment Effect

A psychological phenomenon in which people assign higher value to things merely because they own them.