Which Statement Below Best Expresses the Relationship Between the 3-Month

question 18

Multiple Choice

Which statement below best expresses the relationship between the 3-month Treasury bill rate and the overnight loans rate? The rates are

• A)not similar because banks can not readily substitute between them.
• B)similar because they are both required to remain with the Bank of Canada's operating band.
• C)similar because banks can readily substitute between them.
• D)not similar because the treasury bill rate is established through the financial markets whereas the overnight loans rate is set by the Bank of Canada.
• E)not similar because the treasury bill rate is set by the Government of Canada whereas the overnight loans rate is set by the Bank of Canada.

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Definitions:

Two-Factor Theory

A psychological theory proposing that human behavior is influenced by both associative and reinforcement processes.

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Techniques or strategies aimed at decreasing feelings of anxiety, which can include behavioral, cognitive, or pharmacological methods.

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Behaviors aimed at preventing exposure to unpleasant or feared stimuli, often discussed in the context of anxiety and phobias.

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A feeling of worry, nervousness, or unease about something with an uncertain outcome, often reflecting a response to stress.