When the Bank of Canada Wants to Lower the Real

question 84

Multiple Choice

When the Bank of Canada wants to lower 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) lower;down;lower
• D) higher;up;raise
• E) lower;down;up

---

Definitions:

Intelligence

The ability to acquire and apply knowledge and skills.

Microprocessor

A central processing unit manufactured on a single integrated-circuit chip (or several chips) by utilizing large-scale integration technology.

Network Switch

A networking device that connects devices together on a computer network, using packet switching to receive, process, and forward data to the destination device.

Hub

A common connection point for devices in a network, which is used to connect segments of a LAN and manage data traffic.