Part 4: The operational range

This part consists of two short-answer questions. The number of points awarded per question will be indicated to you as you go along. Instructions: Answer in the space provided. Referring to the following statement, answer questions 1 and 2.

The press release explains that:

"The Bank of Canada announced today that it is raising the target for the overnight rate by a quarter of a percentage point to 4%. It also increases the limits of the operational range for this rate by a quarter of a point [...]".

1)Explain what the operational range is, taking care to define each of its elements.

2)From the data provided in the news release, provide all values of the Bank of Canada's operational range.