The Bank of Canada was created
A) to prevent bad loans by requiring banks to hold reserves.
B) to stimulate the economy in increasing bank reserves.
C) due to a recommendation by a royal commission that was created to analyze the lessons from the Great Depression.
D) to prevent inflation by decreasing the money supply.

Question

Quizplus · Accepted Answer

The Bank of Canada was created in 1934 following a recommendation by the Macmillan Commission, which was created to analyze the lessons from the Great Depression. Its purpose was to regulate and stabilize the Canadian monetary system, and to promote economic and financial welfare. While options A, B, and D are all tools that the Bank of Canada can use to fulfill its purpose, they are not the primary reasons it was created.

The Bank of Canada Was Created