Choose the correct statements.

1. The Bank of Canada has preset views about the exchange rate and frequently participates in the foreign exchange to move the exchange rate closer to its target.

2. When inflation is low and the Bank of Canada wants to avoid recession comma it takes actions that raise the overnight rate.

3. The interest rate that the Bank of Canada targets is the overnight loans rate.

4. The Bank of Canada announces its overnight rate target on eight fixed dates throughout the year.

A.

Statements 1 and 3

B.

Statements 3 and 4

C.

Statements 1 and 2

D.

Statements 2 and 4