Question 16 (1 point)

What is the relationship between the economic policies of the Bank of Canada and those of the federal government?

Question 16 options:

a)	They usually have similar goals concerning the direction to move the economy.

b)	They are both controlled by the nation.

c)	They are always unrelated.

d)	They are usually in conflict.

Question 17 (1 point)

The action of individuals or private institutions buying a newly issued Canada Savings Bond or a treasury bill:

Question 17 options:

a)	is unrelated to both government budget surpluses and deficits.

b)	is borrowing by the government to finance a budget deficit.

c)	is a result of a government budget surplus.

d)	decrease the size of the government's debt.

Question 18 (1 point)

All of the following except one are functions of the Bank of Canada. Which is the exception?

Question 18 options:

a)	It is the regulator of the money supply.

b)	It is the sole issuer of currency.

c)	It is auditor and inspector of the commercial banks.

d)	It ensures that the commercial banks remain profitable.

Question 19 (1 point)

What is the purpose of the Bank of Canada?

Question 19 options:

a)	It supplies the economy with currency.

b)	All of these.

c)	It acts as auditor and inspector of the commercial banks.

d)	It acts as a financial agent for the federal government.

Question 20 (1 point)

What is the effect of an increase in the money supply?

Question 20 options:

a)	It will decrease the quantity of investment spending.

b)	It will decrease the demand for money.

c)	It will increase the interest rate.

d)	It will lower the interest rate.

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