One of the Bank of Canada's most important roles is to be ________.
A) the Federal government's banker
B) the issuer of government debt
C) a lender-of-last-resort
D) a regulator of banks

Question

Quizplus · Accepted Answer

Being a lender-of-last-resort is one of the key roles of the Bank of Canada, which means it provides emergency funding to financial institutions during times of crisis to ensure the stability of the financial system. While the Bank of Canada also has other important roles such as regulating banks, it is not their primary function. The Bank of Canada is not the issuer of government debt, but it does oversee the management of the government's public debt. It is also not the Federal government's banker, although it does hold and manage the government's accounts.

One of the Bank of Canada's Most Important Roles Is