How is the Bank of Canada able to affect the supply of money?

Question 1 options:

a)	By controlling the number of banks allowed to carry on business.

b)	By emphasizing importance of financial literacy for Canadian.

c)	By using fiscal policy effectively.

d)	By influencing the level of bank reserves.

Question 2 (1 point)

All of the following except one are functions of the Bank of Canada. Which is the exception?

Question 2 options:

a)	It is auditor and inspector of the commercial banks.

b)	It ensures that the commercial banks remain profitable.

c)	It is the regulator of the money supply.

d)	It is the sole issuer of currency.

Question 3 (1 point)

Which of the following is an objective of fiscal policy?

Question 3 options:

a)	energy independence from Middle East oil

b)	high rates of economic growth

c)	health care coverage for all Americans

d)	discovering a cure for Alzheimer's

Question 4 (1 point)

Bank rate serves as the basis for establishing the chartered banks' prime interest rates.

Question 4 options:

	a) True
	b) False

Question 5 (1 point)

What is the Bank of Canada?

Question 5 options:

a)	A state-owned central bank, whose basic goal is to control the money supply and thereby help to promote general economic welfare.

b)	A privately-owned central bank, whose basic goal is to earn profits for its owners.

c)	A state-owned central bank, whose basic goal is to provide income for the Government of Canada.

d)	A privately-owned central bank, whose basic function is to minimize the risk for commercial banks in order to make them reasonably secure and profitable.

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