Pls help with homework, select correct option and explain in 7-8 sentences. How does the Bank of Canada set the bank rate?Select one:O A. The Bank of Canada does not determine the bank rate.O B. The bank rate is set at a quarter percentage point above the prime lending rate.O C. The bank rate is set at 25 basis points above the operating band.O D. The bank rate is set at a quarter percentage point below the overnight loans rate.O E. The bank rate is set at a quarter percentage point above the target overnight loans rate.

The Bank of Canada is a crown organization and Canada's national bank. It was contracted in 1934…

oes the Bank of Canada set the bank rate? one: The Bank of Canada does not determine the bank rate. The bank rate is set at a quarter percentage point above the prime lending rate. The bank rate is set at 25 basis points above the operating band. The bank rate is set at a quarter percentage point below the overnight loans rate. The bank rate is set at a quarter percentage point above the target overnight loans

oes the Bank of Canada set the bank rate? one: The Bank of Canada does not determine the bank rate. The bank rate is set at a quarter percentage point above the prime lending rate. The bank rate is set at 25 basis points above the operating band. The bank rate is set at a quarter percentage point below the overnight loans rate. The bank rate is set at a quarter percentage point above the target overnight loans

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter25: Money, Banking, And The Federal Reserve System

Section: Chapter Questions

Problem 13P

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Suppose that the bank holds $15m of treasury bonds, $10m of reserves, $30m of checkable deposits, $20 of time deposits and has $6m of capital. How much loan does the bank have if we know it doesn't have any other assets or liabilities Suppose in the same bank checkable deposits and reserves pay 0 interest. The interest rate on treasuries is 3%, loans pay 7% and time deposits pay 5%. How much profit does the bank make? What is the banks return on assets?
What is meant by "demand deposits"? O a) Bank accounts where you can't withdraw money by writing a check, but can withdraw the money at a bank-or can transfer it easily to a checking account. O b) An institution that operates between a saver with financial assets to invest and an entity who will receive those assets and pay a rate of return. c) Deposits in banks that are available by making a cash withdrawal or writing a check. C PRECEDENS 22 d) A bank's liabilities can be withdrawn in the short term while its assets are repaid in the long term.
Bank A has $5,000 in reserves, all required to be held. The required reserve ratio is 10 percent. Bank A has checkable deposits of O $500. O $5,000. O $50,000. O $500,000.
Suppose that the bank holds $15m of treasury bonds, $10m of reserves, $30m of checkable deposits, $20m of time deposits and has $6m of capital. How much loan does the bank have if we know it doesn't have any other assets or liabilities not listed here? Suppose that checkable deposits and reservers pay 0 interest The interest rate on treasuries is 3% Loans pay 7% and time deposits pay 5% How much profits does the bank make? What is the bank's return on assets?
Suppose that the bank holds $15m of treasury bonds, $10m of reserves, $30m of checkable deposits, $20 of time deposits and has $6m of capital. How much loan does the bank have if we know it doesn't have any other assets or liabilities Suppose in the same bank checkable deposits and reserves pay 0 interest. The interest rate on treasuries is 3%, loans pay 7% and time deposits pay 5%. How much profit does the bank make?
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Suppose that a bank holds $15m in treasury bonds $10m in reserves $30m of checkable deposits $20m of time deposits $6m of capital How much loan does the bank have if we know it doesn't have any other assets or liabilities Suppose that checkable deposits and reserves pay 0 interest The interest rate on treasuries is 3% The loan pays 7% Time deposits pay 5% How much profit does the bank make? What is the bank's return on assets? 3.2% 2.9% 3.7% 2.6%
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