Exam 16: Tools of Monetary Policy

If LVTS participating financial institutions have insufficient settlement balances ________.

The equivalent to the Federal Reserve's discount rate in the European System of Central Banks is the ________.

When the overnight rate is up to 50 basis points below the bank rate ________.

The target for the overnight interest rate is also known as the ________.

Explain why the bank rate minus 50 basis points (i_b-50) is the lower limit for the overnight rate.

The goal of the Bank of Canada's current monetary policy is to keep the inflation rate within a target range of ________.

The European Central bank uses the ________ to signal its stance on monetary policy.

The overnight rate is important because it is ________.

To keep inflation from falling below the target range, the Bank of Canada ________.

In Canada, the market for settlement balances (reserves) is where ________.

The Bank of Canada's repurchase transactions are an advantage because ________.

If government deposits at the Bank of Canada are predicted to increase, the Bank will offset the transaction through government debt auctions to ________ settlement balances.

The Bank of Canada's operating band is ________ basis points or ________.

The Automated Clearing Settlement System (ACSS) ________.

A repo is a ________.

Multilateral netting is ________.

The Bank of Canada neutralizes special PRA operations so as to ________.

If the Bank of Canada expects the economy to slow down, it ________ the operating band for the overnight interest rate.

SPRAs and SRAs are ________ open market operations.

If the Bank of Canada charges for negative settlement balances to LVTS participants an interest rate of 3.5 percent then the operating target of the Bank's monetary policy is ________.