Question

Which of the following statements best describes the Bank of Canada? it is:

a. a publicly owned and publicly controlled central bank, whose basic goal is to provide income for the Government of Canada
b. a privately owned and publicly controlled central bank, whose basic goal is to earn profits for its owners
c. a publicly owned and publicly controlled central bank, whose basic goal is to control the money supply and interest rates in promoting the general economic welfare
d. a privately owned and publicly controlled central bank, whose basic function is to minimize the risks in chartered banking in order to make it a reasonably profitable industry
e. a privately owned and privately controlled bank, whose basic goal is to earn profits for its owners

Answer 1

The Bank of Canada is a publicly owned and controlled central bank focused on regulating the money supply and interest rates to promote economic welfare, similar to the role of the U.S. Federal Reserve.

Step-by-step explanation:

The Bank of Canada is best described as c. a publicly owned and publicly controlled central bank, whose basic goal is to control the money supply and interest rates in promoting the general economic welfare. This aligns with the roles of central banks, such as the U.S. Federal Reserve, the European Central Bank, and the Bank of England, which also focus on conducting monetary policy and promoting the stability of the financial system. The Bank of Canada does not aim to generate income for the government or earn profits for private owners; rather, its primary objectives include maintaining a low and stable rate of inflation, a safe and secure currency, financial stability, and the efficient management of government funds and public debt.