ECON201 Lecture Notes - Lecture 20: Monetary Policy, Landing Vehicle Tracked, Debit Card

• School: University of Waterloo
• Department: Economics
• Course: ECON201
• Professor: Predrag Rajsic

Document Summary

1. characterize the framework for the implementation of monetary policy in canada. 2. explain the market for reserves and how changes in monetary policy affect overnight interest rates. 3. summarize how conventional monetary policy tools are implemented and the strength and weaknesses of each tool. 5. compare and contrast the policy tools of the bank of canada with those of the. The system allows participants to send large payments, securely, in real time, with certainty that the payments will settle. All other cpa members can arrange lvts payments through lvts participants. Settlement payments take place at the end of the business day. Multilateral netting - an agreement among the participants that transaction be summed rather than settled individually. Benefit of reducing the need for a large amount of settlement balances. Systemic risk - the risk of collapse of the entire payments system. Settlement of small paper-based transactions (e. g. cheques) and small-value electronic transactions (e. g. debit card transactions)