531 #
© 2014 Pearson Canada Inc.#
- If government deposits at the Bank of Canada are predicted to decrease, the Bank will offset
the transaction through government deposit auctions to ____ settlement balances.
A) decrease
B) increase
C) inject
D) resupply
Answer: A
Diff: 2 Type: MC Page Ref: 418 - 419
Skill: Recall
Objective List: 17.3 Identify the Bank of Canada's approach to monetary policy and the tools of
policy
17.6 Bank of Canada Lending
The facility at which banks can borrow reserves from the Bank of Canada is called the
____.
A) standing lending facility
B) temporary lending facility
C) permanent lending facility
D) daily lending facility
Answer: A
Diff: 2 Type: MC Page Ref: 421
Skill: Recall
Objective List: 17.3 Identify the Bank of Canada's approach to monetary policy and the tools of
policy
A standing lending facility is ____.
A) the facility at which banks can borrow reserves from the Bank of Canada
B) a temporary lending facility
C) a permanent lending facility
D) a daily lending facility
Answer: A
Diff: 2 Type: MC Page Ref: 421
Skill: Recall
Objective List: 17.3 Identify the Bank of Canada's approach to monetary policy and the tools of
policy
One of the Bank of Canada's most important roles is to be ____.
A) the Federal government's banker
B) the issuer of government debt
C) a lender-of-last-resort
D) a regulator of banks
Answer: C
Diff: 1 Type: MC Page Ref: 422
Skill: Recall
Objective List: 17.3 Identify the Bank of Canada's approach to monetary policy and the tools of
policy