Question

1. III. Discuss Canada’s central bank – The Bank of Canada – in detail. Discuss all the features below
2. 1. The origins of the bank
3. 2. The formal structure of the bank
4. 3. The four main areas of responsibility
5. 4. The independence – make a case for and against independence of the bank
6. 5. What are the implications of the presence of the Bank of Canada with respect to the changing nature of the world today?

Answer 1

Bank of Canada was created in 1934 and is responsible for promoting a safe and sound financial system.Bank of Canada is a partner in shaping a good monetary policy for Canada.The Bank of Canada headquartered in Ottawa.The Prime Minister RB Bennett fell in love with Canada in 1933 to form the Bank of Canada It reported its policy recommendations in favor of establishing a central bank.First as a privately owned corporation Chartered by Bank of Canada.The purpose of the bank is to act as stated in the preamble, the bank commenced operations by 1935 and later became the main bank for the economic activity of the Bank of Canada

After World War II, the bank expanded its role to promote Canada's economic growth. Since the 1980s, the Bank of Canada has been focusing on reducing inflation.

Now let's take a look at some of the important responsibilities of the Bank of Canada .Quality of production, trade, prices, and employment

Promote financial well-being by keeping the cash as much as possible, Restrict debt and currency in the best interests of the nation's economic life National strike mocking your external value and control.

As we have said, the main purpose of the Bank of Canada is to control the inflation and for this purpose, the bank will be a powerful tool in achieving this objective of determining the interest rate on the borrowing money.Another function of the bank is to issue currency notes in the form of banknotes in Canada.Bank of Canada is the only authority .We know that the Bank of Canara is designed as a crown corporation rather than a government department. The bank gave the power inthe the name of the finance minister for the government.

  Next is the balance sheet related responsibility of Bank of Canada.The bank balance sheet has a zero book value.Total assets are matched with total potential.And any equivalent above this amount transfers a dividend to the Government of Canada.Bank of Canada's balance sheet for 2008 was up 73.9% compared to the same period last year .This type of emergency asset central bank transaction is referred to as securities repurchased from major banks in Canada. The Bank of Canada has proposed a framework for non-conventional lending measures in the event of another financial crisis in which the bank's current growth rate is likely to improve .

The government thinks it will help new Canadian banks, including six large companies, have a new standing-time liquidity.The Bank of Canada welcomes the move to accept the facility.