Economics Monetary Policy Questions
The Bank of Canada plays a crucial role in monetary policy in Canada. Its main objective is to promote the economic and financial well-being of the country. The bank is responsible for setting and implementing monetary policy, which involves managing the money supply, interest rates, and the overall stability of the financial system. It uses various tools, such as open market operations, to influence the availability and cost of credit in the economy. Additionally, the Bank of Canada acts as the lender of last resort, providing liquidity to financial institutions during times of crisis. Overall, the bank's role is to maintain price stability, support economic growth, and ensure the stability and efficiency of the financial system in Canada.