When the Bank of Canada Wants to Raise the Real

question 78

Multiple Choice

When the Bank of Canada wants to raise the real interest rate in Canada,it announces a ________ overnight rate target (and the entire operating band around the overnight rate target shifts ________) .In response,the commercial banks ________ the market interest rates,particularly,the short-term rates,by a similar amount.

• A) higher;down;raise
• B) lower;up;lower
• C) higher;up;lower
• D) higher;up;raise
• E) lower;down;up

---

Definitions:

Cultural Background

Cultural background encompasses the societal, ethnic, linguistic, and familial influences that shape an individual's experiences and worldview.

Magnetic Field

A vector field that describes the magnetic influence on moving electric charges, electric currents, and magnetic materials.

Clinical Interview

A method used in psychology to gather information about an individual's psychological state through direct conversation, often used in diagnosis and assessment processes.

DSM-5

The 5th edition of the Diagnostic and Statistical Manual of Mental Disorders, a manual published by the American Psychiatric Association for diagnosing and classifying mental disorders.