the economics of money, banking, and financial markets

(Sean Pound) #1
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  1. The Bank of Canada's lender-of-last resort lending is coordinated with ____ and
    ____.
    A) Office of the Superintendent of Financial Institutions Canada; Canada Deposit Insurance
    Corporation
    B) Office of the Superintendent of Financial Institutions Canada; the Department of Finance
    C) the Department of Finance; Canada Deposit Insurance Corporation
    D) Office of the Superintendent of Financial Institutions Canada; Canada Investment and
    Savings
    Answer: A
    Diff: 2 Type: MC Page Ref: 357
    Skill: Recall
    Objective List: 15.1 Classify the institutional structure of the Bank of Canada as well as four of
    the most important foreign central banks




  2. In its responsibility for the government's operating accounts, the Bank of Canada ____.
    A) shifts balances between accounts at the Bank of Canada and the banks
    B) shifts balances between chartered banks
    C) sells Canada Savings Bonds on behalf of the federal government
    D) manages foreign exchange transactions
    Answer: A
    Diff: 2 Type: MC Page Ref: 357
    Skill: Recall
    Objective List: 15.1 Classify the institutional structure of the Bank of Canada as well as four of
    the most important foreign central banks




  3. The Bank of Canada's goal of low inflation is closely tied to ____.
    A) economic growth
    B) price volatility
    C) low interest rates
    D) growth in the money supply
    Answer: A
    Diff: 2 Type: MC Page Ref: 357
    Skill: Recall
    Objective List: 15.1 Classify the institutional structure of the Bank of Canada as well as four of
    the most important foreign central banks




  4. The purchase and sale of government securities by the Bank of Canada is known as
    ____.
    A) open market buyback operations
    B) repurchase agreements
    C) interbank borrowing
    D) monetary base transactions
    Answer: A
    Diff: 1 Type: MC Page Ref: 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



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