What Is the Most Important Objective of the Bank of Canada

question 18

Multiple Choice

What is the most important objective of the Bank of Canada?

• A)keeping the bank rate at between 1 percent and 3 percent
• B)keeping the unemployment rate at between 1 percent and 3 percent
• C)keeping the inflation rate at between 1 percent and 3 percent
• D)keeping the growth rate of the economy at between 1 percent and 3 percent

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Definitions:

General Price Level

An indicator of the average prices of goods and services throughout an economy over a period of time, often used to measure inflation.

Hourly Pay

Compensation or wage calculated based on the number of hours worked, often used for part-time, temporary, or freelance work.

U.S. Dollar Terms

Pricing or valuation of goods, services, or assets denominated in U.S. dollars, irrespective of the local currency.

Real Hourly Compensation

The wages received by an employee adjusted for inflation, reflecting the true purchasing power over time.