A "basis point" is a term often used in describing interest rates and 100 basis points is the equivalent to a __________ percent change in the interest rate.
The lowest feasible level for a central bank's key policy rate is called the
A) minimum prime business rate.
B) minimum overnight lending rate.
C) benchmark rate.
D) lowest official interest rate.
E) effective lower bound
Financial markets pay close attention to changes in the overnight rate target because these changes
A) directly affect a large volume of loans.
B) indicate the Bank of Canada's plans for monetary policy.
C) indicate commercial bank lending policies.
D) directly affect the interest payments on the national debt.
E) directly impact consumer interest burdens.
Proponents of the modern central banking theory of interest rate determination agree that central banks can control
A) short-term market interest rates.
B) medium-term market interest rates.
C) long-term market interest rates.
D) long-term real interest rates.
E) medium-term real interest rates.