Which of the following statements best describes the Bank of Canada? It is:
A)a publicly owned and publicly controlled central bank, whose basic goal is to provide income for the Government of Canada
B)a privately owned and publicly controlled central bank, whose basic goal is to earn profits for its owners
C)a publicly owned and publicly controlled central bank, whose basic goal is to control the money supply and interest rates in promoting the general economic welfare
D)a privately owned and publicly controlled central bank, whose basic function is to minimize the risks in chartered banking in order to make it a reasonably profitable industry
E)a privately owned and privately controlled bank, whose basic goal is to earn profits for its owners

Question

Quizplus · Accepted Answer

The Bank of Canada is a publicly owned and publicly controlled central bank, whose central goal is to control the money supply and interest rates in promoting the general economic welfare. Its main objective is to "promote the economic and financial welfare of Canada," which is achieved through monetary policy, financial system stability, and serving as the banker and fiscal agent for the Canadian government. The Bank of Canada's primary responsibility is maintaining the stability of the Canadian economy, and it operates at arm's length from the government to ensure its independence.

Which of the Following Statements Best Describes the Bank of Canada