If the Bank of Canada Charges for Negative Settlement Balances

question 60

Multiple Choice

If the Bank of Canada charges for negative settlement balances to LVTS participants an interest rate of 3.5 percent then the operating target of the Bank's monetary policy is ________.

• A) 3.25 percent
• B) 3.75 percent
• C) 3 percent
• D) 4 percent

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Definitions:

Inner Ear

A complex structure in the ear responsible for hearing and balance, comprising the cochlea, vestibule, and semicircular canals.

Depolarization

Decrease in electrical charge across a membrane, usually due to the inward flow of sodium ions.

Hyperpolarization

Increase in electrical charge across a membrane, usually due to the inward flow of chloride or sodium ions or the outward flow of potassium ions.

Calcium Channels

Calcium channels are protein-based channels present in the cell membrane that facilitate the entry of calcium ions into cells, playing crucial roles in various physiological processes.