Chapter 5 Economic Policy KT Flashcards
The policy pursued by the federal government to influence economic growth through the use of taxation and government spending.
fiscal policy
The minimum rate at which the Bank of Canada makes short-term advances to the chartered banks, other members of Payments Canada and investment dealers who trade in the money market.
Bank Rate
The accumulation of total government borrowing over time; the sum of past deficits minus the sum of past surpluses.
national debt
A Payments Canada electronic system for the transfer of large dollar payments between participating financial institutions.
Large Value Transfer System (LVTS)
An open-market operation used by the Bank of Canada to relieve undesired upward pressure on overnight financing rates.
Special Purchase and Resale Agreements (SPRA)
This association operates a highly automated national clearing system for interbank payments. Members include chartered banks, trust and loan companies and some credit unions and caisses.
Payments Canada
An open-market operation by the Bank of Canada to offset undesired downward pressure on overnight financing costs.
Sale and Repurchase Agreements (SRA)
The interest rate set in the overnight market.
overnight rate
Occurs when government revenue for the year exceeds expenditures.
budget surplus
Occurs when total spending by the government for the year is higher than revenue collected.
budget deficit
The policy designed to improve the performance of the economy by regulating credit.
monetary policy
An investment dealer appointed by a company or government to advise it in financial matters and to manage the underwriting of its securities.
fiscal agent
