Choose the Statement That Is Incorrect

question 46

Multiple Choice

Choose the statement that is incorrect.

• A)The Bank of Canada's choice of monetary policy instrument is the overnight loans rate.
• B)Although the Bank of Canada can change the overnight rate by any reasonable amount that it chooses, it normally changes the overnight rate by a single point at a time.
• C)In recent years, the overnight loans rate has been at historically low levels.
• D)Since late 2000, the Bank has established eight fixed dates on which it announces its overnight loans rate target for the coming period of approximately six weeks.
• E)The Bank sometimes acts in an emergency between normal announcement dates.

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Definitions:

Consideration

Something of value that is given by both parties to a contract that induces them to enter into the agreement to exchange mutual performances.

Charitable Pledges

Promises to donate a specific amount of money or resources to a charity or non-profit organization.

Consideration

The value, in the form of money, goods, services, or a promise thereof, that is exchanged between parties as part of a contract.

Inadequacy of Consideration

A situation where the value exchanged in a contract is significantly disproportionate, raising questions about the fairness of the agreement.