The Bank of Canada Was Created

question 70

Multiple Choice

The Bank of Canada was created

• A) to prevent bad loans by requiring banks to hold reserves.
• B) to stimulate the economy in increasing bank reserves.
• C) due to a recommendation by a royal commission that was created to analyze the lessons from the Great Depression.
• D) to prevent inflation by decreasing the money supply.

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Definitions:

Partners' Equity

The total amount of capital contributed by partners plus their accumulated profits retained in the business.

Capital Account Balances

The financial records that show the equity ownership and investment contributions of partners or shareholders in a business.

Book Value

The net value of a company's assets minus its liabilities and intangible assets, as shown in the financial statements.

Original Partners

The initial members who form a partnership by agreeing to share the responsibilities and profits of a business.