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

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Definitions:

Income-Distribution Data

Information and statistics that detail how income is spread across different groups or individuals within a society.

In-Kind Transfer Payments

Non-cash payments made to individuals or entities, often in the form of goods or services, rather than cash.

Wages And Salaries

Fixed regular payments made by employers to employees for their labor or services, typically paid on a monthly or hourly basis.

Lorenz Curves

A graphical representation used to illustrate the distribution of income or wealth within a society.