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. end the instability created by a huge crude oil price hike during that time. B. end the instability created by a savings and loan fiasco that occurred during that time. C. take the monetary control over the economy away from the Treasury Department. D. end the instability created by bank panics by acting as a lender of last resort