Which of the following is one of the functions of the Bank of Canada?
A)to maximize profits on behalf of its shareholders
B)to act as a lender of last resort
C)to convert currency into gold
D)to bail out troubled commercial banks

Question

Quizplus · Accepted Answer

The Bank of Canada's function as a lender of last resort means that it provides loans to financial institutions in order to prevent or mitigate financial crises. This helps to maintain financial stability in the economy. Options A and D are incorrect because the Bank of Canada is not a profit-making institution, nor does it bail out troubled commercial banks. Option C is also incorrect because Canada abandoned the gold standard in 1933.

Which of the Following Is One of the Functions of the Bank