Chapter 14 Flashcards
(14 cards)
Slides 4-7 BoC history
What are the four functions of the Bank of Canada?
– Currency
– Funds Management
– Financial System
– Monetary Policy
Who are the government foreign exchange reserves held by? And what do they do with it?
– Manages the government’s foreign exchange reserves held by the Exchange Fund Account
– Engages in international financial transactions to
influence exchange rates
Slide 11 Central Banking Services
What tools does the Bank of Canada use to employ monetary policy? (3)
– Open market (buyback) operations
– Open market operations in the FX market
– Shifting of government balances between it and the direct clearing members of Payments Canada implement changes in the money supply
Slide 13 Bank of Canada Independence
Slides 15-18 Should the Bank of Canada Be Independent?
What is the US central bank called and what are the three major branches?
U.S. central bank, the Federal Reserve System
or “the Fed”
– Board of Governors of the Federal Reserve System
– Federal Reserve Banks
– Federal Open Market Committee (FOMC)
Slide 19 theory of bureaucratic behaviour
What is a political business cycle?
Should avoid political business cycles, where
before elections, expansionary policies are pursued
Slides 27-29 European central bank
What is the international trend with the independence of central banks?
Growing international trend towards greater Central
Bank independence
Slide 30 Bank of England and Bank of Japan
