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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