Select the

Listen Select the correct statement about monetary policy. a) By setting the overnight lending/borrowing rate between financial institutions, the Bank of Canada indirectly influences ALL interest rates in the economy. (b) The lower limit of the operating band is the Bank Rate. c) The central bank lends to financial institutions when downward pressure on the overnight rate pushes it below the lower limit of the operating band. Od) The central bank borrows from financial institutions when upward pressure on the overnight rate pushes it above the upper limit of the operating band