Targeting the Interest Rate LO5 9- 1© 2012 McGraw-Hill Ryerson Limited.

Slides:



Advertisements
Similar presentations
Simple Interest I =Prt I = Interest P = Principle r = rate t = time
Advertisements

Balance Sheet Workspace Practice Problems. Problem 1 The US Treasury borrows from the nonbank public by selling them US Treasury securities. The nonbank.
1 of 24 ©2012 McGraw-Hill Ryerson Limited Learning Objectives 3.Outline the many factors to be considered in dividend policy. Calculate aftertax income.
© 2013 McGraw-Hill Ryerson Limited. The entry to record the employer’s portion of CPP and EI for textbook Exhibit A.2 is: EI expense (1.4 x $65.22)
Multiple Cash Flows FV Example 1 continued
Understanding Economics
Understanding Economics Chapter 14 Monetary Policy Copyright © 2005 by McGraw-Hill Ryerson Limited. All rights reserved. 3 rd edition by Mark Lovewell,
© 2003 McGraw-Hill Ryerson Limited. Monetary Policy and the Debate about Macro Policy Chapter 14.
©2012 McGraw-Hill Ryerson Limited 1 of 34 Learning Objectives 1.Calculate 13 financial ratios that measure profitability, asset utilization, liquidity.
Who wants to be a Millionaire? Click to begin game.
Finding the Payment on a Spreadsheet
©2012 McGraw-Hill Ryerson Limited 1 of 39 ©2012 McGraw-Hill Ryerson Limited 3.Define the various marketable securities available for investment by the.
Slides are prepared by Dr. Amy Peng, Ryerson University Chapter Ten Central Banking and Monetary Policy Macroeconomics by Curtis, Irvine, and Begg Canadian.
33 Interest Rates and Monetary Policy McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
MACROECONOMICS BY CURTIS, IRVINE, AND BEGG SECOND CANADIAN EDITION MCGRAW-HILL RYERSON, © 2010 Chapter 10 Central Banking & Monetary Policy.
6-0 Finding the Number of Payments – Example 1 You ran a little short on your February vacation, so you put $1,000 on your credit card. You can only afford.
33 Interest Rates and Monetary Policy McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
MACROECONOMICS BY CURTIS, IRVINE, AND BEGG SECOND CANADIAN EDITION MCGRAW-HILL RYERSON, © 2010 Chapter 8 Money, Banking, and the Money Supply.
ALOMAR_212_4 1 Financial Market Instruments. ALOMAR_212_42 What are the securities (instruments) traded in the financial market? 1- Money Market Instruments:
Copyright © 2009 by McGraw-Hill Ryerson Limited. All rights reserved. Understanding Economics 5th edition by Mark Lovewell.
©2012 McGraw-Hill Ryerson Limited 1 of 34 Learning Objectives 1.Calculate 13 financial ratios that measure profitability, asset utilization, liquidity.
1 of 24 ©2012 McGraw-Hill Ryerson Limited Learning Objectives 3.Outline the many factors to be considered in dividend policy. Calculate aftertax income.
Apply Transaction Analysis Duality of effects means every transaction has at least two effects on the basic accounting equation. A = L + SE must hold true.
© 2012 McGraw-Hill Ryerson LimitedChapter  In 2007, 80 percent of payments were made electronically, only 20% made by cheque  This was done by.
Monetary Policy – policy designed to change the money supply, credit availability, and interest rates – responsibility of the Bank of Canada LO2 9- 1©
Chapter 17 Money, Banking, and Financial Markets: The Central Bank Balance Sheet and the Tools of Monetary Policy ©2010 McGraw-Hill Ryerson Ltd. Tim Berry,
16 McGraw-Hill/IrwinCopyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. Interest Rates and Monetary Policy.
©2012 McGraw-Hill Ryerson Limited 1 of 30 Learning Objectives 1.Identify reasons for a foreign investment decision (later analyze). (LO1) 2.Examine the.
©2012 McGraw-Hill Ryerson Limited 1 of 23 Learning Objectives 1.Characterize trade credit as an important form of short-term financing and calculate its.
Basic Bank Services Bank account Bank deposits and cheques Electronic funds transfer Bank credit card transactions Debit card transactions 1 © 2013 McGraw-Hill.
The Debit/Credit Framework The framework used for journals and ledger accounts was created more than 500 years ago. Journals are used to record the effects.
 To keep inflation low, stable and predictable, to moderate the business cycle, and help the economy achieve full employment and sustained growth.  By.
Bank reconciliations are: Prepared periodically to explain the difference between cash reported on the bank statement and the cash balance on company’s.
© 2012 McGraw-Hill Ryerson LimitedChapter  Setting a Credit Policy ◦ Credit policy: Standards set to determine the amount and nature of credit to.
1-0 Corporate Finance 1.1 Some important questions that are answered using finance What long-term investments should the firm take on? Where will we get.
Learning Objectives Understand the Business – LO1 Distinguish among service, merchandising, and manufacturing operations. – LO2 Explain common principles.
Supply of Money Interest Rate the annual rate at which payment is made for the use of money (or borrowed funds) a percentage of the borrowed amount the.
© 2012 McGraw-Hill Ryerson LimitedChapter  Venture capital is money invested to finance a new firm  Venture capitalists are investors who are prepared.
 A single bank can lend one dollar for each dollar of excess reserves  The banking system can lend (create money) by a multiple of its excess reserves.
16 Interest Rates and Monetary Policy McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
© 2012 McGrawHill Ryerson Ltd.Chapter 5 -1  Example: You deposit $1,200 in your bank account today; $1,400 one year later; and $1,000 two years from today.
Money Definition M1  Currency: Coins + Paper Money  token money  Bank of Canada notes  Demand Deposits  about 3/4 of M1  Institutions That Offer.
© 2012 McGraw-Hill Ryerson Ltd. Forms of Market Segmentation Mass marketing Segment marketing Niche marketing Individualized marketing 0 LO 2.
Lecture notes Prepared by Anton Ljutic. © 2004 McGraw–Hill Ryerson Limited Money and Banking CHAPTER SEVEN.
Chapter 4: Learning Objectives  Characteristics of Financial Market Instruments: Money Market Instruments Capital Market Instruments  Financial Innovations.
Copyright (c) 2006 McGraw-Hill Ryerson Limited. Chapter 4: Learning Objectives Characteristics of Financial Market Instruments: Money Market Instruments.
Copyright 2005 © McGraw-Hill Ryerson Ltd.Slide 0.
Think about a service you receive.
Key Terms Section 8.1 & 8.2  How can your savings give you the flexibility in your life choices? *Saving *Commercial Bank *Saving Bank *Dividend *Savings.
20-1 McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. Chapter 2020 Understanding Money and Financial.
Learning Objectives Understand the Business – LO1 Distinguish among service, merchandising, and manufacturing operations. – LO2 Explain common principles.
©2012 McGraw-Hill Ryerson Limited 1 of 33 Learning Objectives 1.Define primary, secondary, money and capital markets. (LO1) 2.Outline the primary participants.
5-0 Finding the Number of Periods Start with basic equation and solve for t (remember your logs) FV = PV(1 + r) t t = ln(FV / PV) / ln(1 + r) You can use.
The law in Canada is Procedural AND Substantive  Procedural law - the law that guide us as to how the criminal justice system works  Substantive law.
Creating Money © 2012 McGraw-Hill Ryerson Limited8- 1 LO4 Assets What a company owns or what is owed to it Liabilities What a company owes Net Worth Total.
©2012 McGraw-Hill Ryerson Limited 1 of 23 Learning Objectives 1.Characterize trade credit as an important form of short-term financing and calculate its.
The Federal Reserve In Action. What is the Fed?  Central bank of the United States  Established in 1913 (Federal Reserve Act of 1913)  Purpose is to.
Lecture notes Prepared by Anton Ljutic. © 2004 McGraw–Hill Ryerson Limited Monetary Policy CHAPTER TWELVE.
Monetary Policy Chapter 15 Section 2. What is monetary policy? The Fed can expand or contract the money supply by influencing the cost of credit What.
18 McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Interest Rates and Monetary Policy 18.
Learning Objectives Understand the Business – LO1 Explain why adjustments are needed. Study the accounting methods – LO2 Prepare adjustments needed at.
Copyright © 2004 McGraw-Hill Ryerson Limited. All rights reserved. Chapter 25: Learning Objectives  The Original Purpose of Central Banks  The Bank of.
 Canadian Chartered Banks  A multi-branched, privately owned, chartered financial intermediary that has received a charter by Act of Parliament  Fractional.
McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved. The Federal Reserve System Chapter 14.
McGraw-Hill/Irwin ©2008 The McGraw-Hill Companies, All Rights Reserved The Federal Reserve System Chapter 14.
INTEREST RATES AND MONETARY POLICY McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
Interest Rate vs Money Supply
By: Pharhon Mckenzie Grade:8A1
Monetary Policy.
TOOLS OF FED POLICY OPEN MARKET OPERATIONS DISCOUNT LOANS
Presentation transcript:

Targeting the Interest Rate LO5 9- 1© 2012 McGraw-Hill Ryerson Limited

Targeting the Interest Rate Overnight interest rate the interest rate that commercial banks charge one another on overnight loans Bank rate the rate of interest payable by the commercial banks on loans from the Bank of Canada LO5 9- 2© 2012 McGraw-Hill Ryerson Limited

Targeting the Interest Rate Target for the overnight rate the Bank of Canada’s key policy interest rate. It is the midpoint of the Bank’s 50-basis-point operating band LO5 9- 3© 2012 McGraw-Hill Ryerson Limited

Targeting the Interest Rate LO5 9- 4© 2012 McGraw-Hill Ryerson Limited Bank rate 2.75% Target for the overnight rate 2.5% Bankers deposit rate 2.25% The rate the commercial banks pay the Bank of Canada on loans The rate that the Bank of Canada pays commercial banks on deposits

Feedback: Privacy Policy Feedback
Do Not Sell My Personal Information
About project: SlidePlayer Terms of Service

© 2025 SlidePlayer.com. Inc. All rights reserved.