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When the Overnight Rate Is Less Than the Overnight Rate

Question 51

Multiple Choice

When the overnight rate is less than the overnight rate target,settlement balances are in ________ and the Bank of Canada will ________ Government of Canada bonds and ________ them at a predetermined price the next business day.


A) deficit;buy;sell
B) deficit;sell;buy
C) surplus;buy;sell
D) surplus;sell;buy
E) equilibrium;buy;sell

Correct Answer:

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