The goal of the Bank of Canada is
A) a high foreign-exchange value of the dollar.
B) a high reserve ratio.
C) no inflation.
D) price stability.

Question

Quizplus · Accepted Answer

The goal of the Bank of Canada is to achieve and maintain price stability by targeting a low and stable rate of inflation. This promotes economic growth and stability by keeping the overall level of prices in the economy relatively constant. A high foreign-exchange value of the dollar or a high reserve ratio are not specific goals of the Bank of Canada.

The Goal of the Bank of Canada Is