Because of the nature of its liabilities, it is not possible for the Bank of Canada to go bankrupt.

Name: Because of the nature of its liabilities, it is not possible for the Bank of Canada to go bankrupt.
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Question

Quizplus · Accepted Answer

The Bank of Canada, like other central banks, can issue currency and control the money supply, which essentially allows it to manage its liabilities in a way that prevents bankruptcy. It can always create more money to meet its obligations.

Because of the Nature of Its Liabilities, It Is Not