Question

fully explain how the bank of canada works

Answer 1

Answer :

The Bank of Canada is the central bank of Canada.It is located in Ottawa in the capital of Canada. According to the Bank of Canada Act it was established in 1934. It is assumed that it was established for promoting the economic and financial development of the country.
The main activities of the bank are as follows.
1. Monetary policy : As a central bank of Canada, it is responsible for determining monetary policy of the country, which decides the supply of money circulation in the country.
2. Issuing of currency notes and managing funds according to the requirement of other banks.Giving loans and advances to other commercial banks for meeting short term requirement of funds.
3. As a central bank it also provides advances to government for managing public debts and welfare activities .
4. It is also responsible for maintaining foreign exchange reserves.
5. It also regulates interest rates according to the requirements of the economy of the country and controls overall banking activities of the country.
6. As a Banker's bank,.It also give working guidence and controlling the activities of other commercial banks of the country.
7. As a central bank of the nation ,it also controls inflation and working for growth of the nation.