Inflation rate targeting is a$\_\_\_\_\_$ policy strategy in which the$\_\_\_\_\_$ makes a public commitment to achieving an explicit$\_\_\_\_\_$ target and to explaining how its policy actions will achieve that target.

A$.$

$$fiscal; government; expenditure

B$.$

$$monetary; central$$ bank; inflation

C$.$

$$fiscal; government; export

D$.$

$$monetary; central$$ bank; interest

Part $2$

The overnight loans rate is the interest rate on overnight loans that the$\_\_\_\_\_\_\_.$

Bank of Canada charges the big banks

A$.$

big banks charge the Bank of Canada

B$.$

big banks make to each other

C$.$

chartered banks make to their best customers

D$.$

Bank of Canada charges the big banks

Part $3$

The operating band is the target overnight loans rate plus or minus$\_\_\_\_\_\_\_$ percentage points.

A$.$

$25$

B$.$

$0\mathrm{.}25$

C$.$

$2\mathrm{.}5$

D$.$

$0\mathrm{.}025$

Part $4$

Bank rate is the interest rate that$\_\_\_\_\_\_\_.$

A$.$

chartered banks charge their best customers

B$.$

the Bank of Canada pays banks on their reserves held at the Bank of Canada

C$.$

the Bank of Canada charges big banks on loans

D$.$

big banks charge on loans to each other

Part $5$

The settlement balances rate is the interest rate that$\_\_\_\_\_\_\_.$

A$.$

chartered banks charge their best customers

B$.$

the Bank of Canada pays banks on their reserves held at the Bank of Canada

C$.$

big banks charge on loans to each other

D$.$

the Bank of Canada charges big banks on loans

Part $6$

Macroprudential regulation is a regulation to$\_\_\_\_\_.$

A$.$

protect transactions in financial markets

B$.$

make the stock market shock proof

C$.$

lower the risk that the financial system will crash

D$.$

help commercial banks avoid failure