the economics of money, banking, and financial markets

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15.5 The Changing Face of the Bank of Canada

1. 
   

   According to the performance of the Canadian economy, and the evolution of economic
   theory, what is the most important goal of monetary policy?
   A) Currency stability
   B) Price stability
   C) GDP growth
   D) Employment growth
   Answer: B
   Diff: 2 Type: MC Page Ref: 361
   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. 
   

   Which goal has been set jointly by the Bank and the Department of Finance?
   A) Currency stability
   B) GDP growth
   C) Price stability
   D) Employment growth
   Answer: C
   Diff: 2 Type: MC Page Ref: 361
   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. 
   

   Increased operational independence by the Bank of Canada has also raised the standards for
   ____.
   A) accountability
   B) secrecy
   C) misconduct
   D) confusion
   Answer: A
   Diff: 2 Type: MC Page Ref: 361
   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. 
   

   What contributed to the move towards accountability and transparency of the Bank of
   Canada?
   Answer: The Bank's move towards accountability and transparency was motivated by a number
   of recent trends in society and the economy. These have included economic comprehension
   about interest rates, developments about targets and inflation, and greater openness in the
   government.
   Diff: 2 Type: SA Page Ref: 360 - 361
   Skill: Applied
   Objective List: 15.1 Classify the institutional structure of the Bank of Canada as well as four of
   the most important foreign central banks