Choose the Statement That Is Incorrect

Choose the statement that is incorrect.

A) The Bank of Canada's choice of policy instrument is the overnight loans rate.
B) When the Bank of Canada wants to slow inflation, it raises the overnight loans rate.
C) The Bank has established 12 fixed dates each year on which it announces its overnight rate target for the coming period.
D) Recently, the overnight loans rate has been at historically low levels because the Bank is leaning in the direction of avoiding recession.
E) The overnight rate was a bit more than 8 percent a year in 1995.

Correct Answer:

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