Which of the Following Best Defines the Bank Rate

question 118

Multiple Choice

Which of the following best defines the bank rate?

• A)It is the interest rate the Bank of Canada charges banks.
• B)It is one divided by the difference between one and the reserve ratio.
• C)It is the interest rate banks receive on reserve deposits with Bank of Canada.
• D)It is the interest rate that banks charge on overnight loans to other banks.

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Definitions:

Liquidated

The process of converting assets into cash or paying off liabilities in the winding up of a business or partnership.

Reorganization Plan

A legal process designed to rapidly restructure a company's finances and operations with the aim of restoring its viability.

Plant Expansion

The process of increasing the physical size or production capacity of a manufacturing facility or plant.

Monetary Resources

Financial assets or liquid assets available to a business or individual, including cash, bank deposits, and investments.