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In its role as provider of paper money, the Bank of Canada ____.
A) works closely with private sector partnerships and note-issuing authorities in other countries
in order to improve cost-effectiveness, increase the durability of Canadian bank notes, and
reduce counterfeiting
B) tries to preserve the integrity and safety of Canadian currency in the most economical and
efficient manner possible
C) None of the above.
D) Both A and B of the above.
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
In its role as the federal government's fiscal agent, the Bank of Canada provides debt
management services for the federal government such as ____.
A) advising on provincial government borrowings
B) managing new debt offerings by the federal government
C) servicing the federal government's outstanding debt
D) Both B and C of the above.
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
Which of the following functions are not performed by the Bank of Canada in its role as the
federal government's fiscal agent?
A) Advising on federal government borrowings
B) Managing new debt offerings by the federal government
C) Setting interest rates payable on time deposits
D) Servicing the federal government's outstanding debt
Answer: C
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