When the Bank of Canada Increases the Overnight Rate, It

question 54

Multiple Choice

When the Bank of Canada increases the overnight rate, it:

• A)increases the reserve to deposit ratio (rr).
• B)decreases the reserve to deposit ratio (rr).
• C)is likely to increase the monetary base (B).
• D)is likely to decrease the monetary base (B).

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Definitions:

ADHD

Attention-Deficit/Hyperactivity Disorder, a neurodevelopmental disorder characterized by levels of inattention, disorganization, and/or hyperactivity-impulsivity that are not appropriate for a person's age.

Depression

A mental health disorder characterized by persistently depressed mood or loss of interest in activities, causing significant impairment in daily life.

Smaller-than-normal Brain Size

A condition where the physical size of the brain is below the average for the individual's age and sex.

Premature Delivery

The birth of a baby before the completion of 37 weeks of pregnancy, potentially leading to health challenges for the newborn.