How does the Overnight Rate Target inuence interest rates throughout the economy?

(A) The Overnight Rate is the interest rate that banks use to borrow from each other.

Therefore, the interest rates banks oer to the wider public are set with respect to

this.

(B) It shifts the demand for money to the right, increasing its equilibrium value.

(C) It shifts the demand for money to the left, reducing its equilibrium value.

(D) The Bank of Canada has no inuence, direct or indirect, on interest rates per se; this is more a function of government policy.