Question

It was not until 1945 that the chartered banks completely stopped issuing ____________for circulation and the Bank of Canada's notes became the only _____________in the country.

Answer 1

The chartered banks in Canada stopped issuing banknotes for circulation in 1945, thereafter, the Bank of Canada's notes became the only legal tender in the country, creating a uniform currency system.

Step-by-step explanation:

It was not until 1945 that the chartered banks completely stopped issuing banknotes for circulation and the Bank of Canada's notes became the only legal tender in the country. This change signified a major shift in the Canadian banking system, evolving from a period where multiple banks issued their own currency to a centralized model. This new model helped to stabilize the Canadian economy by providing a uniform currency that was accepted throughout the nation.

Canadians had long faced the problem of diverse bank notes issued by various banks, with fluctuating values and concerns over their backing with actual specie (gold and silver). The National Bank Acts of 1863 and 1864 marked the beginning of a transition toward a national banking system and a uniform currency in the United States, which would inspire similar changes in Canada, culminating in the Bank of Canada's exclusive right to issue currency by 1945.