the economics of money, banking, and financial markets

440 $

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9. 
   

   The Bank of Canada enjoys ____.
   A) instrument independence
   B) political independence
   C) goal independence
   D) Only A and B of the above.
   Answer: D
   Diff: 2 Type: MC Page Ref: 358
   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

   
   


10. 
    

    Under the current "joint responsibility system," ____.
    A) in the event of a serious policy conflict the minister of finance can issue a directive that the
    Bank of Canada must follow
    B) the government accepts full responsibility for monetary policy
    C) the Bank of Canada does not have considerable autonomy in the conduct of day-to-day
    monetary policy
    D) Both A and B of the above.
    Answer: D
    Diff: 2 Type: MC Page Ref: 360
    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

    
    


11. 
    

    Under the current "joint responsibility system," ____.
    A) the Bank of Canada and the minister of finance consult regularly
    B) in the event of a serious policy conflict the minister of finance can issue a directive that the
    Bank of Canada must follow
    C) the Bank of Canada has full responsibility for monetary policy
    D) Only A and B of the above.
    Answer: D
    Diff: 2 Type: MC Page Ref: 360
    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