Why did the government decide to set up the Bank of Canada in 1934? Part 2 The government decided to set up the Bank of Canada in 1934 in order to Part 3 A. take the monetary control over the economy away from the Treasury Department. B. end the instability created by a savings and loan fiasco that occurred during that time. C. end the instability created by a huge crude oil price hike during that time. D. end the instability created by bank panics by acting as a lender of last resort