Read this article (https://www.bankofcanada.ca/2021/04/understanding-policy-interest-rate/) about understanding policy interest rate and answer the following. (40 points) a. Provide a definition for policy interest rate, bank rate, and deposit rate and operating bond? Which of them is set by central bank and which of them is set by commercial banks? What is the role of each of them in changing supply of money? b. What does change in the policy rate mean for public? c. Why does central bank change the target for policy rate

Unit 1' Exercises o Due in Unit 1' 1: Worth 2.596 of nal grade Questions You learned that the Ba Hit of Canada can. use open market operations and bank rates to change Suppfy of money. In the rst two questions you will eupio re these twn methods in more details. MUM! -Mncnoscomunl.olutomm 5 (v) mitt-tyrant; WWW-m WIMU-C 1.. Read this article int 5: understanding policy Interest rate and answer the following. 140 points] interest-rate :I about a. Provide a definition for policy Interest rate, bani: rate, and deposit rate and operating bond? Which of them Is set by central bani: and which of them is set by commercial banks? What is the role of each of them in changing supply of money? b. What does change in the policy rate mean for public? c. Why does central bank change the target for policy rate? 2. Head thisarticlethtt s: www.banhofcanada.ca 202D 12 understandln - uantrtatwe-easin about understanding quantitative easing and answer the following. [all] points]: a. How is this app roach different from changing policy rate? b. How does asset purchasing programs affect bond prices and the bond yields? c. How does asset purchasing programs change the balance sheet of the central ban is? 3. when the central bani: buys and sells bonds through open-market operations. the money supply changes. but there is no effect on the money supply when individuals buy and sell bonds. Explain. {It} points}