The Operating Band for the Overnight Interest Rate Is ________

question 15

Multiple Choice

The operating band for the overnight interest rate is ________.

• A) 50 basis points wide
• B) defines the rate of interest the Bank of Canada charges LVTS participants with negative settlement balances at the end of the banking day
• C) defines the rate of interest the Bank of Canada pays LVTS participants with negative settlement balances at the end of the banking day
• D) A and B only.

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Definitions:

Portfolio

A conglomerate of monetary investments incorporating shares, debentures, material goods, cash on hand, and assets akin to cash, inclusive of mutual funds and ETFs.

Mean

The average of a set of numbers, calculated by dividing the sum of all numbers by the count of numbers.

Investment

The allocation of resources, usually financial, in expectation of generating an income or profit.

Portfolio Expected Return

The weighted average of the expected returns of the assets in an investment portfolio.