Which of the following best defines the bank rate?
A)It is the interest rate the Bank of Canada charges banks.
B)It is one divided by the difference between one and the reserve ratio.
C)It is the interest rate banks receive on reserve deposits with Bank of Canada.
D)It is the interest rate that banks charge on overnight loans to other banks.

Question

Quizplus · Accepted Answer

The bank rate is the interest rate at which a nation's central bank, such as the Bank of Canada, lends money to domestic banks, often influencing the rates those banks charge customers.

Which of the Following Best Defines the Bank Rate