One of the main reasons against creating a central bank in Canada during the Great Depression was:

Question

Quizplus · Accepted Answer

There were several reasons against creating a central bank in Canada during the Great Depression, but the main one was the fear that profits of domestic banks might fall once a central bank became the sole issuer of domestic banknotes. This concern was related to the fact that the central bank would have significant control over the money supply and the ability to influence interest rates, which could affect the profitability of banks. Canada did have the expertise to operate a central bank, and the proper domestic money market could have been developed over time. Therefore, option C is the best choice.

One of the Main Reasons Against Creating a Central Bank