Question 1

What contributed to the move towards accountability and transparency of the Bank of Canada?

Accepted Answer

The Bank's move towards accountability a

Question 2

Supporters of the current system of Bank of Canada independence believe that a less autonomous Bank would ________.

Accepted Answer

A) adopt a short-run bias toward policymaking 
B) pursue overly expansionary monetary policies 
C) be more likely to create a political business cycle 
D) do each of the above 
A) adopt a short-run bias toward policymaking 
B) pursue overly expansionary monetary policies 
C) be more likely to create a political business cycle 
D) do each of the above

Question 3

The Bank of Canada has regional offices in the following cities, except ________.

Accepted Answer

A) Toronto 
B) Vancouver 
C) Edmonton 
D) Halifax 
A) Toronto 
B) Vancouver 
C) Edmonton 
D) Halifax

Question 4

The Executive Board of the European Central Bank ________.

Accepted Answer

A) consists of the European Central Bank's president, vice president, and four other members 
B) is responsible for the business of the European Central Bank 
C) is responsible for the implementation of monetary policy in accordance with the guidelines set by the Governing Council 
D) All of the above. 
A) consists of the European Central Bank's president, vice president, and four other members 
B) is responsible for the business of the European Central Bank 
C) is responsible for the implementation of monetary policy in accordance with the guidelines set by the Governing Council 
D) All of the above.

Question 5

The responsibility of monetary policy in Canada was given by the 1967 Bank of Canada Act to the ________.

Accepted Answer

A) government 
B) Bank of Canada 
C) provincial governments 
D) parliament 
A) government 
B) Bank of Canada 
C) provincial governments 
D) parliament

Question 6

Recent research indicates that inflation performance (low inflation)has been found to be best in countries with ________.

Accepted Answer

A) the most independent central banks 
B) the least independent central banks 
C) political control of monetary policy 
D) a policy of always keeping interest rates low 
A) the most independent central banks 
B) the least independent central banks 
C) political control of monetary policy 
D) a policy of always keeping interest rates low

Question 7

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

Accepted Answer

A) the central bank; goals 
B) Parliament; goals 
C) Parliament; instruments 
D) the central bank; instruments 
A) the central bank; goals 
B) Parliament; goals 
C) Parliament; instruments 
D) the central bank; instruments

Question 8

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

Accepted Answer

A) Federal Reserve Banks 
B) The FDIC 
C) The Board of Advisors 
D) A and B only 
A) Federal Reserve Banks 
B) The FDIC 
C) The Board of Advisors 
D) A and B only

Question 9

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

Accepted Answer

A) the public's welfare 
B) profits 
C) its own welfare 
D) conflict with the executive and legislative branches of government 
A) the public's welfare 
B) profits 
C) its own welfare 
D) conflict with the executive and legislative branches of government

Question 10

The theory of bureaucratic behavior suggests that a consumer's behaviour is motivated by the ________.

Accepted Answer

A) maximization of personal welfare 
B) maximization social welfare 
C) minimization of government intervention 
D) minimization political pressure 
A) maximization of personal welfare 
B) maximization social welfare 
C) minimization of government intervention 
D) minimization political pressure

Question 11

What are the main functions of the Bank of Canada? Describe them briefly.

Accepted Answer

The main functions of the Bank of Canada

Question 12

Which goal has been set jointly by the Bank and the Department of Finance?

Accepted Answer

A) Currency stability 
B) GDP growth 
C) Price stability 
D) Employment growth 
A) Currency stability 
B) GDP growth 
C) Price stability 
D) Employment growth

Question 13

Which of the following is not an entity of the Federal Reserve System?

Accepted Answer

A) Federal Reserve Banks 
B) The FDIC 
C) The Board of Governors 
D) The Board of Advisors 
A) Federal Reserve Banks 
B) The FDIC 
C) The Board of Governors 
D) The Board of Advisors

Question 14

The European Central Bank is located in ________.

Accepted Answer

A) Frankfurt 
B) London 
C) Paris 
D) Rome 
A) Frankfurt 
B) London 
C) Paris 
D) Rome

Question 15

The Bank of Japan was founded in ________.

Accepted Answer

A) 1882 
B) 1922 
C) 1932 
D) 1952 
A) 1882 
B) 1922 
C) 1932 
D) 1952

Question 16

Changes in the ________ lead to ________ changes in the money supply.

Accepted Answer

A) monetary base; multiple 
B) monetary base; equal 
C) inflation rate; multiple 
D) inflation rate; equal 
A) monetary base; multiple 
B) monetary base; equal 
C) inflation rate; multiple 
D) inflation rate; equal

Question 17

In its role as the federal government's fiscal agent, the Bank of Canada provides debt management services for the federal government such as ________.

Accepted Answer

A) advising on provincial government borrowings 
B) managing new debt offerings by the federal government 
C) servicing the federal government's outstanding debt 
D) B and C only. 
A) advising on provincial government borrowings 
B) managing new debt offerings by the federal government 
C) servicing the federal government's outstanding debt 
D) B and C only.

Question 18

Goal independence is ________.

Accepted Answer

A) the ability of the central bank to set monetary policy goals 
B) the ability of the government to set monetary policy goals 
C) the ability of the prime minister to set monetary policy instruments 
D) the ability of the government to set monetary policy instruments 
A) the ability of the central bank to set monetary policy goals 
B) the ability of the government to set monetary policy goals 
C) the ability of the prime minister to set monetary policy instruments 
D) the ability of the government to set monetary policy instruments

Question 19

Describe the structure of the Bank of Canada.

Accepted Answer

The overall responsibility for the opera

Question 20

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

Accepted Answer

A) 15 
B) 10 
C) 5 
D) 2 
A) 15 
B) 10 
C) 5 
D) 2

Exam 14: Central Banks and the Bank of Canada

What contributed to the move towards accountability and transparency of the Bank of Canada?

Supporters of the current system of Bank of Canada independence believe that a less autonomous Bank would ________.

The Bank of Canada has regional offices in the following cities, except ________.

The Executive Board of the European Central Bank ________.

The responsibility of monetary policy in Canada was given by the 1967 Bank of Canada Act to the ________.

Recent research indicates that inflation performance (low inflation)has been found to be best in countries with ________.

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

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

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

The theory of bureaucratic behavior suggests that a consumer's behaviour is motivated by the ________.

What are the main functions of the Bank of Canada? Describe them briefly.

Which goal has been set jointly by the Bank and the Department of Finance?

Which of the following is not an entity of the Federal Reserve System?

The European Central Bank is located in ________.

The Bank of Japan was founded in ________.

Changes in the ________ lead to ________ changes in the money supply.

In its role as the federal government's fiscal agent, the Bank of Canada provides debt management services for the federal government such as ________.

Goal independence is ________.

Describe the structure of the Bank of Canada.

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

Why Study Money, Banking, and Financial Markets

An Overview of the Financial System

What Is Money

Understanding Interest Rates

The Behaviour of Interest Rates

The Risk and Term Structure of Interest Rates

The Stock Market, the Theory of Rational Expectations, and the Efficient Market Hypothesis

An Economic Analysis of Financial Structure

Financial Crises

Economic Analysis of Financial Regulation

Banking Industry: Structure and Competition

Banking and the Management of Financial Institutions

Risk Management With Financial Derivatives

The Money Supply Process

Tools of Monetary Policy

The Conduct of Monetary Policy: Strategy and Tactics

The Foreign Exchange Market

The International Financial System

Quantity Theory, Inflation, and the Demand for Money

The Is Curve

The Monetary Policy and Aggregate Demand Curves

Aggregate Demand and Supply Analysis

Monetary Policy Theory

The Role of Expectations in Monetary Policy

Transmission Mechanisms of Monetary Policy

Financial Crises in Emerging Markets

The ISLM Model

Non-Bank Finance

Filters

Instrument independence is the ability of to set monetary policy .

Changes in the lead to changes in the money supply.