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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
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
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
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