Multiple Choice
Which of the following best defines the bank rate?
A) It is the interest rate the Bank of Canada charges banks.
B) It is one divided by the difference between one and the reserve ratio.
C) It is the interest rate banks receive on reserve deposits with Bank of Canada.
D) It is the interest rate that banks charge on overnight loans to other banks.
Correct Answer:
Verified
Correct Answer:
Verified
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