Which of the Following Statements Is False

question 65

Multiple Choice

Which of the following statements is false?

• A) The interest rates that banks offer on investments or charge on loans depends on the horizon of the investment or loan.
• B) The Bank of Canada determines very short-term interest rates through its influence on the overnight rate.
• C) The interest rates that are quoted by banks and other financial institutions are nominal interest rates.
• D) Fundamentally, interest rates are determined by the Bank of Canada.

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Definitions:

Petty Cash

A small amount of cash on hand used for covering minor expenses.