Which of the Following Statements Best Describes the Bank of Canada

question 93

Multiple Choice

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 and maintain price stability and it is an independent agency of government.
• 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.

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Definitions:

Physical Inventory

The process of counting and verifying the actual quantities of merchandise or goods in stock, typically performed at the end of an accounting period.

Cost Flow Assumption

The method by which a company values and moves its costs (such as FIFO, LIFO) to determine the cost of goods sold and ending inventory valuation.

Net Income

The total earnings of a company after subtracting all expenses, taxes, and costs from total revenue; also known as net profit.

Inventory System

A method for keeping track of the quantity, location, and status of goods a company has in stock.