What Happens When the Cost of Acquiring Funds from the Bank

question 132

Multiple Choice

What happens when the cost of acquiring funds from the Bank of Canada is low?

• A) Banks raise the interest rates they charge their customers.
• B) Fewer businesses and individuals are willing to take out loans.
• C) The economy slows and inflation is reduced.
• D) Interest rates on bank loans tend to fall.

---

Definitions:

Air Passageways

The routes throughout the respiratory system, including the nose, throat, windpipe, and lungs, through which air is inhaled and exhaled.

Radioactive Chemical

A substance that contains unstable atoms which release radiation as they decay.

PET Scan

Positron Emission Tomography, a sophisticated imaging technique that uses radioactive substances to visualize and measure changes in metabolic processes and in other physiological activities including blood flow, regional chemical composition, and absorption.

Tracer

A radioactive substance used in medical imaging or scientific research to track the presence or distribution of substances within the body or environment.