role of the central bank

Pregunta	Respuesta
Monetary policy objective	a central bank goal regarding a macro-econmic indicator that the bank influences.
Inflation-control target	refers either to the rage of annual inflation rates within which the central bank aims to keep actual inflation or to the midpoint of the target range
Total CPI	synonym for the CPI
Core CPI	Measure of the price level that excludes the most volatile components of the CPI.. (Fruit, vegetables and gasoline) for canada
total cpi inflation	rate of change for the total cpi
core cpi inflation	rate of change for the core CPI
Monetary Policy Instrument	a tool or technique that a central bank uses to achieve a monetary policy objective.
modern central banking theory	the view that the central bank changes its key policy rate (interest rates) directly and commercial banks respond by changing market interest rates.
official interest rates	a general term for the interest rate which the central bank controls to achieve its monetary policy objective a term for the key policy rate of a central bank
key policy rate	official interest rate for the bank of canada
Prime Business Rate//prime rate	the interest rate that commercial banks charge to their least risky business borrowers
benchmark rate	an interest rate upon which other interest rates are based
Overnight rate target	the interest rate that the bank of canada wants to prevail in the financial market where major canadian institutions borrow and lends funds to settle daily transactions with eachother
overnight rate	the market interest rate that financial institutions charge each-other for overnight loans
large value transfer system	an electronic wire system overseen by the bank of canada that allows major financial institutions operating in canada to send large payments bank and forth
settlement balances	accouns held at the bank of canada by financial institutions for the purpose of settling their net payment obligations to one another
operating band	a term used by the bank of canada to describe the rate of possible overnight interest rates from .25% points below the overnight rate to .25% above the target
operating band	Image: download (image/jpeg)
Deposit rate	the interest rate that the bank of canada pays commercial banks for the overnight deposits (lower band of the operating band)
Bank Rate	the interest rate that the bank of canada charges commercial banks for overnight loans (upper limit of band)
basis point	1 100th of a % point
interest rate spread	the difference often measured in basis points between a benchmark interest rate and a related market interest rate (often overnight rates and mortgage lending rates)

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	Creado por alistairewart hace más de 10 años