Under Its Current Operating Procedure,the Bank of Canada Implements Monetary

question 118

Multiple Choice

Under its current operating procedure,the Bank of Canada implements monetary policy by announcing a target for the ________,and then intervenes (if necessary) in the _______ in order to maintain this rate within a _______ percentage-point operating band above and below this target.

• A) overnight rate;overnight loan market; 0.50
• B) prime business rate;money markets; 0.25
• C) overnight rate;money markets; 0.25
• D) overnight rate;overnight loan market; 0.25
• E) overnight rate;money markets;0.50

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Definitions:

Account Payable

Money owed by a company to its suppliers or creditors for goods or services received, considered a current liability on the balance sheet.

Creditor

An entity (could be a person, organization, government body) to whom money is owed by the debtor for providing a loan, goods, or services on credit.

Bank Memos

Notices from a bank that make adjustments to a company's bank account balance, often for fees, interest payments, or corrections.

Bank Reconciliation

The analysis that details the items responsible for the difference between the cash balance reported on the bank statement and the balance of the cash account in the ledger.