the economics of money, banking, and financial markets

531 #

© 2014 Pearson Canada Inc.#

9. 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

1. 
   

   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

   
   


2. 
   

   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

   
   


3. 
   

   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