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In its role as provider of central banking services, the Bank of Canada ____.
A) serves as a lender of last resort if a deposit-taking institution faces a liquidity crisis
B) plays a central role in Canada's national mortgage system
C) is responsible for the government's operating accounts and for managing the government's
foreign exchange reserves
D) Both A and C of the above.
Answer: D
Diff: 2 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
In its role as provider of central banking services, the Bank of Canada holds deposit accounts
of the ____.
A) provincial governments
B) directly clearing members of the Canadian Payments Association
C) international organizations, such as the International Monetary Fund
D) Both B and C of the above.
Answer: D
Diff: 2 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
As the federal government's fiscal agent the Bank of Canada provides ____
management services for the federal government.
A) debt
B) cost
C) financial
D) economic
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
The Bank of Canada serves as a lender of last ____ when a deposit-taking financial
institution faces a ____ crisis.
A) resort; liquidity
B) minute; liquidity
C) resort; profitability
D) minute; profitability
Answer: A
Diff: 2 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