application 1: Overview 1. Can I open an account at your bank? No, The Bank of Canada i not a co!!ercial in titution.

"nlike T#, $oyal% It doe not provide re&ular bankin& ervice . The Bank of Canada i the nation) central bank It belon& to the federal &overn!ent. No, it i a pecial type of Crown corporation. The Central Bank i a -tate of the !onetary and financial !ana&e!ent of the hi&he t in titution . The function i .to pro!ote the econo!ic and financial welfare of Canada.. It take re pon ible for the control of the !oney upply, credit ter! , and the re&ulation of the financial y te!. Ba ically, thi i inflation2control y te!3 they need to keep inflation near ' per cent to the !id2point of a 1 to * per cent tar&et ran&e. To pro!ote the econo!ic and financial welfare of Canada, control the !oney upply, credit ter! , and the re&ulation of the financial y te!. It i re pon ible for their de i&n 4and anti2counterfeitin& feature 5, di tribution, and replace!ent. The Bank provide policy advice to the &overn!ent on the efficient !ana&e!ent of thi debt and ell the ecuritie at auction to financial !arket di tributor and dealer . Inflation2control tar&et

'. (hat i the Bank of Canada? *. (ho own the Bank of Canada? +. I the Bank of Canada a &overn!ent depart!ent? ,. (hy do we need a central bank?

/. (hat doe the Bank do?

0 1onetary policy

0 Central bankin& ervice

0 Bank note

0 6d!ini terin& public debt

7. (ho i re pon ible for !onetary policy?

8 #ay2to2day 8 Collective re pon ibility 8 If profound di a&ree!ent ;. <ow doe the Bank i!ple!ent !onetary policy? =. (hat i the difference between !onetary and fi cal policy?

Bank) 9overnin& Council 9overnor and the 1ini ter of :inance 1ini ter of :inance The Bank i!ple!ent !onetary policy by influencin& hort2ter! intere t rate . 6 !onetary policy i the !ean by which a central bank influence the de!and, upply and, hence, price of !oney and credit in order to direct a nation) econo!ic ob>ective . :i cal policy i the !ean by which a &overn!ent ad>u t it level of pendin& in order to !onitor and influence a nation) econo!y.

1?. (ho i re pon ible for !ana&in& the Bank? 11. (hat i the role of the 9overnor?

Board of #irector The 9overnor of the Bank of Canada i a C@O of the bank, o he can control the bu ine of the Bank. The 9overnor al o pre ide over the Board of #irector .

1'. #oe the Bank of Canada No, :inancial in titution et their et the .pri!e rate.? own pri!e rate ba ed on the co t of hort2ter! fund . 1*. Can I file a co!plaint with No, you can contact the Office of the the Bank of Canada re&ardin& -uperintendent of :inancial a bank? In titution to co!plaint 1+. (hy doe n)t the Bank >u t If the Bank were to print !oney to print enou&h !oney to pay off repay the national debt, it would be our national debt? addin& &reatly to the a!ount of !oney in circulation. Thi would encoura&e people to pend and borrow !ore, and the econo!y would receive a te!porary boo t. Thi would reduce the value of !oney, rai e intere t rate , and

under!ine the &rowth of the econo!y.