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15.5 The Changing Face of the Bank of Canada
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
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
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
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