Question

In: Economics

The functions of the Bank of Canada include A. providing deposit insurance at Canadian commercial banks...

The functions of the Bank of Canada include

A. providing deposit insurance at Canadian commercial banks

B. setting the exchange rate for the Canadian dollar on world markets

C. acting as the lender of last resort for the largest private corporations

D. regulating banks and the stock market

E. acting as banker for the commercial banks

Solutions

Expert Solution

Bank of Canada act as the banker for commercial bank Hence option E is correct, deposit insurance is provided by CDIC owned by Canadian government, exchange rate is determined by free market,lender ofnlast resort means to provide financing to other banks or institution not to privates, OSC and other regulators regulates stock market not BoC.

Hence, option E is correct

Rahul Sunny answered 2 years ago
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