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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
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
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