Fig. 1: The Overnight Lending Market Fig. 2: The Money Market Interest Interest Rate 8.60% ,,,,,,,,,,,,,,,,,,,,,,,, Rate 6.50% 7'1 T2 4.60% h K Quantity of Reserves M1 M2 Quantity of Note: Enter numerical answers to two decimal places. Don't include the percent sign in your answers. Part 1: In Figure 1, the Bank of Canada pays Banks with a positive balance at the close of payments settlement: Number '14:. Part 2: In Figure 1, the Bank of Canada publicly announces a target rate of: Number %. Part 3: The Bank of Canada will advance funds to Banks at what rate? Number %. Part 4: The equilibrium interest rate in Figure 1 is Number %, and it is known as the target overnight lending rate. - target overnight lending rate. Part 5: If the Demand for Reserves (RD) increases and shifts right as shown by FIDE, the inter- target bank of Canada rate. exceed: Number /o. target excess reserves rate. target reserve funds rate. Part 6: If the Demand for Reserves (RD) falls and shifts left as shown by EDS, the interest rate tar et de osit rate. Nu mber /o. g p Part 7: In Figure 2, the interest rate r1 represents: Click lor List v Part 8: From Figures 1 and 2: Click for List ' Part 9: A rightward shift of the money supply curve in Figure 21rom M15 to M23 is associated with Click for List v Part 10: If the original state of the economy has figure 1 at point J and figure 2 at point E1, then the interest rate r1 is: Click for List ' Fig. 1: The Overnight Lending Market Fig. 2: The Money Market Interest PD2 Interest + MS Rate Rate 8.60% RD3 6.50% PS E1 1 4.60% MP (P, Y) Quantity of Reserves M M2 Quantity of Note: Enter numerical answers to two decimal places. Don't include the percent sign in your answers. Part 1: In Figure 1, the Bank of Canada pays Banks with a positive balance at the close of payments settlement: Number %. Part 2: In Figure 1, the Bank of Canada publicly announces a target rate of: Number %. Part 3: The Bank of Canada will advance funds to Banks at what rate? Number Part 4: The equilibrium interest rate in Figure 1 is Number %, and it is known as the target overnight lending rate. Part 5: If the Demand for Reserves (RD) increases and shifts right an n his DD2 the into in this mardent will not banks' premium rate for most credit-worthy clients. exceed: Number %. the short-term rate in the money market Part 6: If the Demand for Reserves (R) falls and s the average rate the banks charge each other for funds. fall below: Number the trend-setting interest rate for the economy. the average rate the Bank of Canada charges the banks for funds. Part 7: In Figure 2, the interest rate r represents: Click for List Part 8: From Figures 1 and 2: Click for List Part 9: A rightward shift of the money supply curve in Figure 2 from Mis to M.S is associated with Click for List Part 10: If the original state of the economy has figure 1 at point J and figure 2 at point E, then the interest rate r, is: Click for ListInterest Rate 1 5.50% 4.60% t K Quantity of Reserves M1 M2 Quantity of Note: Enter numerical answers to two decimal places. Don't include the percent sign in your answers. Part 1: In Figure 1, the Bank of Canada pays Banks with a positive balance at the close of payments settlement: Number %. Part 2: In Figure 1, the Bank of Canada publicly announces a target rate of: Number %. Part 3: The Bank of Canada will advance funds to Banks at what rate? Number %. Part 4: The equilibrium interest rate in Figure 1 is Number %, and it is known as the target overnight lending rate. v Part 5: If the Demand for Reserves (RD) increases and shifts right as shown by R02, the interest rate in this market will not exceed: Number %. Part 6: If the Demand for Reserves (RD) falls and shifts left as shown by Rm, the interest rate in this market will not fall below: Number %. Part 7: In Figure 2, the interest rate r1 represents: Click for List ' Part 8: From Figures 1 and 2: Click for List - the demand for money in panel B drives the demand for reserves in panel A. any relationship between interest rates in the two markets is an empiricai issue and requires data analysis. interest rates in the two markets are determined independentiy since different types of funds are traded. the demand for reserves in panel Adrives the demand tor money in panei B. interest rate r1 is: it's part 01 Bank ol Canada's policy objective to separate the two markets from each other. Interest R5! 3 Rate 4.60% """" 5 Quantity of Reserves M1 M2 Quantity of Note: Enter numerical answers to two decimal places. Don't include the percent sign in your answers. Part 1: In Figure 1, the Bank of Canada pays Banks with a positive balance at the close of payments settlement: Number %. Part 2: In Figure 1, the Bank of Canada publicly announces a target rate of: Number %. Part 3: The Bank of Canada will advance funds to Banks at what rate? Number %. Part 4: The equilibrium interest rate in Figure 1 is Number %, and it is known as the target overnight lending rate. v Part 5: If the Demand for Fleserves (FIB) increases and shifts right as shown by H\Interest R5! 3 Interest Rate 3 Rate 8.60% , ................ 73 6.50% ' " 4.60% """" K Quantity of Reserves M1 M2 Quantity of Note: Enter numerical answers to two decimal places. Don't include the percent sign in your answers. Part 1: In Figure 1, the Bank of Canada pays Banks with a positive balance at the close of payments settlement: Number %. Part 2: In Figure 1, the Bank of Canada publicly announces a target rate of: Number %. Part 3: The Bank of Canada will advance funds to Banks at what rate? Number %. Part 4: The equilibrium interest rate in Figure 1 is Number %, and it Is known as the target overnight lending rate. v Part 5: If the Demand for Reserves (FID) increases and shifts right as shown by FIDE, the interest rate in this market will not exceed: Number %. Part 6: If the Demand for Reserves (RD) falls and shifts left as shown by R03, the interest rate in this market will not fall below: Number %. Part 7: In Figure 2, the interest rate r1 represents: Click for List ' Part 8: From Figures 1 and 2: unrelated to interest rates in figure 1. has no articular relationshi with interest rates in ure 1. . . _ p p g e 2 from M13 to M23 is associated With the same as 625, higher than 6.25. lowerthan 625. point J and figure 2 at point E1, then the interest rate r1 is: Click for List A