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:

Health Care

The organized provision of medical, diagnostic, preventive, and treatment services including mental health, personal care, and research activities.

Pensions

Retirement plans that require an employer to make contributions into a pool of funds set aside for a worker's future benefit.

Income Security

A measure of an individual's or family's financial safety, ensuring a stable source of income to meet basic needs.

Tax Revenue

Tax revenue is the income collected by government through various forms of taxes from individuals and businesses to fund public services and infrastructure.