The Bank of Canada maintains the stability and liquidity of the financial system because of its role as the banker to the Government of Canada.

Question

Quizplus · Accepted Answer

The Bank of Canada's role in maintaining the stability and liquidity of the financial system is broader and includes functions such as setting monetary policy, issuing currency, and acting as the lender of last resort to financial institutions, not just because it is the banker to the Government of Canada.

The Bank of Canada Maintains the Stability and Liquidity of the Financial