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Homework answers / question archive / Going from lowest to highest, the key rates in Canada are
Going from lowest to highest, the key rates in Canada are...
a.
Target overnight, deposit, bank, prime.
b.
Prime, bank, deposit, target overnight.
c.
Bank, prime, target overnight, deposit.
d.
Deposit, target overnight, bank, prime.
Option D
The Bank carries out monetary policy by influencing short-term interest rates. It does this by raising and lowering the target for the overnight rate.
The overnight rate is the interest rate at which major financial institutions borrow and lend one-day (or "overnight") funds among themselves; the Bank sets a target level for that rate. This target for the overnight rate is often referred to as the Bank's policy interest rate.
