How Is Responsibility for Monetary Policy Set Forth in Canada

question 56

Multiple Choice

How is responsibility for monetary policy set forth in Canada?

• A)The Canadian Government administers monetary policy through the office of the Minister of Finance.
• B)The Bank of Canada administers monetary policy as directed by the Minister of Finance.
• C)The Bank of Canada Act places responsibility for the conduct of monetary policy on the Bank's Governing Council.
• D)The Prime Minister bears ultimate responsibility for monetary policy.
• E)Both B and D

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Definitions:

Positive Statements

Objective statements that can be tested, amended, or rejected by referring to the available evidence.

Normative Statement

A value judgment about what ought to be, expressing opinions or assertions that cannot be tested or verified.

Positive Statement

An objective statement based on factual evidence that can be tested and validated, often describing what is, rather than what ought to be.

Microeconomics

A branch of economics that focuses on the actions of individuals and industries, like the dynamics between buyers and sellers, borrowers and lenders.