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:

Cocktail-Party Effect

The ability to focus one's auditory attention on a particular stimulus while filtering out a range of other stimuli.

Sound Shadow

An area where sound waves are obstructed or diminished, often created by obstacles that prevent sound from reaching a listener directly.

Volley Principle

A theory in neuroscience suggesting that groups of neurons can produce a higher frequency of action potentials if they fire in sequence rather than singly.

Signal-Detection Theory

A theory that explores how decisions are made under conditions of uncertainty, typically in the context of detecting weak or ambiguous signals amidst noise.