ECON 231 Study Guide - Final Guide: Overnight Rate, Canadian Dollar, Money Supply
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Lower limit of the Bank of Canada’s operating band. Private institutions receive this on excess funds in their reserve accounts. |
An open market operation that increases liquidity in the overnight market – used to prevent or reverse rising overnight rates. |
Upper limit of the Bank of Canada’s operating band. Private institutions pay this if their reserve counts are in deficit overnight. |
The Bank of Canada’s key policy rate – it’s announced 8 times per year and lies exactly half way between the upper and lower limits of the operating band. |
The electronic system for the real-time verification and end-of-day settling of large financial transfers/payments in the Canadian economy. |
A. ACSS B. Bank rate C. Deposit rate D. LVTS E. Overnight rate F. SPRA/Repos G. SRA/Reverse repos H. Target overnight rate |