the economics of money, banking, and financial markets

432 $

© 2014 Pearson Canada Inc.$

5. 
   

   The benefit of the Ban k of Canada's role as the lender-of-last-resort include ____.
   A) easing liquidity problems of any financial institution
   B) deterring bank runs and panics
   C) reducing the monetary base to increase liquidity
   D) Both A and B
   Answer: D
   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

   
   


6. 
   

   Base money is also know as ____.
   A) monetary base
   B) power money
   C) monetary liability
   D) fund accounts
   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

   
   


7. 
   

   The Bank of Canada assumed the monopoly of issuing bank notes in ____.
   A) 1945
   B) 1939
   C) 1940
   D) 1949
   Answer: A
   Diff: 1 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

   
   


8. 
   

   Which of the following functions are not performed by the Bank of Canada?
   A) Cheque clearing
   B) Conducting economic research
   C) Setting interest rates payable on time deposits
   D) Issuing new currency
   Answer: C
   Diff: 1 Type: MC Page Ref: 356 - 357
   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