29 Best Policy Questions and Answers (Q&A) - ProProfs Discuss

What are the differences between SPRA and SRA?

John Smith
Answered: Sep 26, 2023

Spras come into play when lenders in the overnight market are asking rates that exceed the upper limit of the band, which is the bank rate. the offering of spras to chartered banks relieves upward...Read More

2 Answers

641 views

What is the difference between Fiscal and Monetary policy?

W. Pratt, Marketing Analyst
Answered: Aug 27, 2019

When you deal with money, you may hear a large number of words associated with money. These could be monetary, fiscal, and financial, to name a few. However, if you are into investing and...Read More

2 Answers

295 views

Can you help as I'm having trouble keeping SPRAS and SRAS straight?

John Smith
Answered: Sep 26, 2023

The key to understanding and remembering how spras and sras work is to identify first what the bank of canada does. In a special purchase resale agreement, the first action is a purchase. The...Read More

1 Answer

287 views

What is the difference between Policy and Politics?

K. Keturah
Answered: Nov 19, 2019

The policy can be referred to as a plan, while politics is seen as what the government system typically depicts. Politics can be well defined as the art or science of government or governing,...Read More

2 Answers

278 views

Why is DACA unconstitutional?

B.Oliviasi
Answered: Oct 25, 2017

There are differing opinions about the Deferred Action for Childhood Arrivals or DACA – some claim it’s unconstitutional, while others beg to differ and argue that the program is not...Read More

1 Answer

270 views

What are DACA and DAPA?

B.Oliviasi
Answered: Oct 25, 2017

DACA stands for Deferred Action for Childhood Arrivals while DAPA stands for Deferred Action for Parents of American and Lawful Permanent Residents. In DACA, its purpose is to allow some...Read More

1 Answer

256 views

What options do LVTS participants have at the end of the day regarding their settlement balance?

John Smith
Answered: Sep 26, 2023

Based on the rules set by the bank of canada, the two options are two reduce the lvts position to zero, or essentially pay a penalty to the bank of canada. If you have a surplus and do not make...Read More

1 Answer

256 views

What does DACA mean?

Adam O' Brien
Answered: Oct 25, 2017

DACA stands for Deferred Action for Childhood Arrivals. It an immigration policy created by the Obama administration in June 2012 after DREAMer students has been acknowledged as people who were...Read More

1 Answer

255 views

What's the difference between the overnight rate, the bank rate and the prime rate?

John Smith
Answered: Sep 26, 2023

The overnight rate represents the interest rate at which major participants in thecanadian payments association lend one-day funds to each other. the bank ofcanada would like to keep this rate...Read More

1 Answer

252 views

Is DACA legal?

B.Oliviasi
Answered: Oct 25, 2017

There are different opinions regarding the legality of the Deferred Action for Childhood Arrivals (DACA) which was established by the Obama administration in 2012. Some people claim it is...Read More

1 Answer

237 views

What happens if a bank does'nt reduce its lvts balance to zero?

John Smith
Answered: Sep 26, 2023

Bank of canada rules dictate that if the institution does not reduce their lvts positionto zero, any surpluses will earn an annualized rate of return equivalent to the loweroperating band of the...Read More

1 Answer

236 views

Why do banks have to settle with each other at the end of the day?

John Smith
Answered: Sep 26, 2023

The bank of canada states the following: throughout any given day, the lvts members send payments back and forth to each other. when the transactions are added up at the end of the day, some of...Read More

1 Answer

236 views

Why are the operating bands effective at keeping the overnight rate within the bands?

John Smith
Answered: Sep 26, 2023

Assume the upper band is 5.50% and the lower band is 5.00%. The target for the overnight rate of interest is 5.25%. To see why the bank rate is effective at keeping interest rates below the upper...Read More

1 Answer

235 views

Can you explain the monetary conditions index example in thetext?

John Smith
Answered: Sep 26, 2023

The paragraph implies that a one percentage point rise in interest rates has the sametype of effect on the economy as would a 3 percent increase in the trade-weightedexchange rate. it means that the...Read More

1 Answer

228 views

Can you compare and contrast the rational, Keynesian, monetarist, and supply-side theories of the economy?

John Smith
Answered: Sep 26, 2023

The rational expectations theory suggests that firms and workers are rational thinkers and can evaluate all the consequences of a government policy decision, thereby neutralizing its intended...Read More

1 Answer

223 views

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