the economics of money, banking, and financial markets

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15.3 The Functions of the Bank of Canada

1. 
   

   Which of the following functions does the Bank of Canada perform?
   A) Bank note issue
   B) Municipal government fiscal policy management
   C) Provincial government fiscal policy management
   D) Advise the Federal Reserve
   Answer: A
   Diff: 2 Type: MC Page Ref: 356
   Skill: Recall
   Objective List: 15.2 Identify the Bank of Canada's functions and degree of independence and
   specify the arguments for and against an independent central bank

   
   


2. 
   

   Which of the following is a responsibility of the Bank of Canada?
   A) Funds management
   B) Fiscal policy
   C) Equalization payments
   D) Foreign policy
   Answer: A
   Diff: 2 Type: MC Page Ref: 356
   Skill: Recall
   Objective List: 15.2 Identify the Bank of Canada's functions and degree of independence and
   specify the arguments for and against an independent central bank

   
   


3. 
   

   Treasury bills are a responsibility of ____.
   A) the Bank of Canada
   B) Canada Investment and Savings
   C) Ministry of the Treasury
   D) the federal government
   Answer: A
   Diff: 2 Type: MC Page Ref: 356
   Skill: Recall
   Objective List: 15.2 Identify the Bank of Canada's functions and degree of independence and
   specify the arguments for and against an independent central bank

   
   


4. 
   

   Foreign exchange reserves are held by ____.
   A) the federal government
   B) the department of finance
   C) the Ministry of Central Banking
   D) individual provinces and territories
   Answer: A
   Diff: 2 Type: MC Page Ref: 356
   Skill: Recall
   Objective List: 15.2 Identify the Bank of Canada's functions and degree of independence and
   specify the arguments for and against an independent central bank