Can28L1
1
In Canada, the central bank is the ___________________.
Bank of Ottawa
National Bank of Canada
Federal Reserve Bank of Canada
Bank of Canada
2
All of the following statements about a central bank are true except that it __________________.
conducts monetary policy
is a public authority
supervises financial institutions
accepts personal deposits
3
One role of monetary policy is to control _______ by changing the _______.
inflation; price level
the price level; level of taxation
unemployment; level of taxation
inflation; quantity of money in circulation
4
The sum of coins held by households, firms, and banks, Bank of Canada notes outside the Bank, and chartered banks' deposits at the Bank of Canada is the _________________.
monetary base
monetary policy indicator
assets of the Bank of Canada
liabilities of the Bank of Canada
5
Monetary policy indicators are _______ features of the economy that are good predictors of the _______ economy.
current; future
future; future
future; current
current; current
6
The interest rate on large loans that chartered banks make to each other is the _______________.
overnight loans rate
bank rate
prime rate
Treasury bill rate
7
The interest rate that the Bank of Canada charges when it lends reserves to chartered banks is the ___________.
bank rate
Treasury bill rate
overnight loans rate
reserve rate
8
An open market operation occurs when __________ buys or sells government of Canada securities from or to _______.
the Bank of Canada; the public
a chartered bank; the government of Canada
a chartered bank; the public
the Bank of Canada; the government of Canada
9
The transfer of government funds by the Bank of Canada between the government's account at the Bank of Canada and the government's accounts at chartered banks is called __________________.
government deposit shifting
an open market operation
money creation
government deposit shuffling
10
An increase in currency held by households and firms is _______________.
a currency drain
income
wealth
a currency surplus
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