The main motivation for the formation of the Bank of Canada in 1934 was ________.

Question

Quizplus · Accepted Answer

The Bank of Canada was formed in 1934, at a time when Canada was seeking greater political independence from Britain. The formation of a national central bank was seen as a way for Canada to assert its independence and gain control over its monetary and financial policies. While financial considerations and government debt may have played a role in the decision, the primary motivation was political. Coordinating international trade policy was not the main motivation for the formation of the Bank of Canada.

The Main Motivation for the Formation of the Bank of Canada