Exam 14: Central Banks and the Bank of Canada

The political business cycle refers to the phenomenon that just before elections, politicians enact ________ policies. After the elections, the bad effects of these policies (for example, ________ ) have to be counteracted with ________ policies.

Which of the following is an element of the Bank of Canada?

Goal independence is ________.

Goal independence is the ability of ________ to set monetary policy ________.

How do political cycles influence aggregate economic activity?

The strongest argument for an independent Bank of Canada rests on the view that subjecting the Bank to more political pressures would impart ________.

Under the current "joint responsibility system," ________.

While legislation enacted in 1998 granted the Bank of Japan new powers and greater autonomy, its critics contend that its independence is ________.

The Maastricht Treaty which established the European Central Bank, defined price stability as an inflation rate equal to ________.

From 1929 to 1933 the Canadian real GDP fell by almost ________.

The Bank of Canada assumed the monopoly of issuing bank notes in ________.

The theory of bureaucratic behaviour suggests that the objective of a bureaucracy is to maximize ________.

Canada's national payments system currently clears and settles payments and transactions, at a volume that is currently ________ times our annual GDP.

The Great Depression contributed to significant changes in Canadian ________.

The Great Depression ________.

Which of the following are entities of the Bank of Canada?

Which of the following are entities of the Federal Reserve System?

Which of the following statements are true of the Bank of England?

Increased operational independence by the Bank of Canada has also raised the standards for ________.

The Bank of Canada's goal of low inflation is closely tied to ________.