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application 1: Overview

1. Can I open an account at

your bank?

No, The Bank of Canada i not a

co!!ercial intitution. "nlike T#,

$oyal% It doe not provide re&ularbankin& ervice.

'. (hat i the Bank of

Canada?

The Bank of Canada i the nation)

central bank

*. (ho own the Bank of

Canada?

It belon& to the federal

&overn!ent.

+. I the Bank of Canada a

&overn!ent depart!ent?

No, it i a pecial type of Crown

corporation.

. (hy do we need a central

bank?

The Central Bank i a -tate of the

!onetary and financial !ana&e!ent

of the hi&het intitution. The

function i to pro!ote the econo!ic

and financial welfare of Canada.

/. (hat doe the Bank do? It take reponible for the control of

the !oney upply, credit ter!, and

the re&ulation of the financial

yte!.

0 onetary policy Baically, thi i inflation2control 

yte!3 they need to keep inflation 

near ' per cent to the !id2point of a

1 to * per cent tar&et ran&e.

0 Central bankin& ervice To pro!ote the econo!ic and

financial welfare of Canada, control

the !oney upply, credit ter!, and

the re&ulation of the financial

yte!.

0 Bank note It i reponible for their dei&n 4andanti2counterfeitin& feature5,

ditribution, and replace!ent.

0 6d!initerin& public debt The Bank provide policy advice to

the &overn!ent on the efficient

!ana&e!ent of thi debt and ell

the ecuritie at auction to financial

!arket ditributor and dealer.

7. (ho i reponible for

!onetary policy?

 Inflation2control tar&et

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8 #ay2to2day Bank) 9overnin& Council

8 Collective reponibility 9overnor and the initer of

inance

8 If profound dia&ree!ent initer of inance;. <ow doe the Bank

i!ple!ent !onetary policy?

The Bank i!ple!ent !onetary

policy by influencin& hort2ter!

interet rate.

=. (hat i the difference

between !onetary and fical

policy?

6 !onetary policy i the !ean by

which a central bank influence the

de!and, upply and, hence, price of

!oney and credit in order to direct a

nation) econo!ic ob>ective.

ical policy i the !ean by which a

&overn!ent ad>ut it level of

pendin& in order to !onitor and

influence a nation) econo!y.

1. (ho i reponible for

!ana&in& the Bank?

Board of #irector

11. (hat i the role of the

9overnor?

The 9overnor of the Bank of Canada

i a C@O of the bank, o he cancontrol the buine of the Bank. The

9overnor alo preide over the

Board of #irector.

1'. #oe the Bank of Canada

et the pri!e rate?

No, inancial intitution et their

own pri!e rate baed on the cot of

hort2ter! fund.

1*. Can I file a co!plaint with

the Bank of Canada re&ardin&

a bank?

No, you can contact the Office of the 

-uperintendent of inancial

Intitution to co!plaint

1+. (hy doen)t the Bank >ut

print enou&h !oney to pay off

our national debt?

If the Bank were to print !oney to

repay the national debt, it would be

addin& &reatly to the a!ount of

!oney in circulation. Thi would

encoura&e people to pend and

borrow !ore, and the econo!y

would receive a te!porary boot.

Thi would reduce the value of

!oney, raie interet rate, and

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under!ine the &rowth of the

econo!y.