Suppose the Bank of Canada Announces Its Target for the Overnight

Multiple Choice

Suppose the Bank of Canada announces its target for the overnight interest rate at 2.5%.In that case,the Bank of Canada is willing to lend to commercial banks at ________% and is willing to pay ________% on deposits it receives from commercial banks.

A) 2.25; 2.5
B) 2.5; 2.0
C) 2.5; 2.5
D) 2.75; 2.25
E) 3.5; 1.5