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9/12/24, 3:39 Doc -PM Macroeconomics
Economics of Money, Banking & Financial Markets, 5e
(Mishkin) Chapter 15 Central Banks and the Bank of
Canada
15.1 Origins of the Bank of Canada
1) From 1929 to 1933 the Canadian real GDP fell by almost .
A) 30 percent
B) 40 percent
C) 50 percent
D) 20 percent
Answer: A
Diff: 1 Type: MC Page Ref: 354
Skill: Recall
Objective List: 15.1 Classify the institutional structure of the Bank of Canada as well as four of
the most important foreign central banks
2) Unemployment rates in Canada after the Great Depression rose close to .
A) 20 percent
B) 25 percent
C) 30 percent
D) 10 percent
Answer: A
Diff: 1 Type: MC Page Ref: 354
Skill: Recall
Objective List: 15.1 Classify the institutional structure of the Bank of Canada as well as four of
the most important foreign central banks
3) The Great Depression contributed to significant changes in Canadian .
A) monetary policy
B) nationalization
C) growth policy
D) immigration
Answer: A
Diff: 1 Type: MC Page Ref: 354
Skill: Recall
Objective List: 15.1 Classify the institutional structure of the Bank of Canada as well as four of
the most important foreign central banks
170
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,9/12/24, 3:39 Doc -
PM Macroeconomics
4) Bank of Canada started operations in
. A) 1935
B) 1925
C) 1915
D) 1945
Answer: A
Diff: 1 Type: MC Page Ref: 354
Skill: Recall
Objective List: 15.1 Classify the institutional structure of the Bank of Canada as well as four of
the most important foreign central banks
5) The Great Depression contributed to significant changes in Canadian .
A) deficits
B) monetary policy
C) foreign affairs policy
D) immigration policy
Answer: B
Diff: 1 Type: MC Page Ref: 354
Skill: Recall
Objective List: 15.1 Classify the institutional structure of the Bank of Canada as well as four of
the most important foreign central banks
6) The Great Depression .
A) was of fundamental importance in the creation of the Bank of Montreal
B) contributed to significant changes in government policy
C) involved the largest increase in the level of economic activity in the history of Canada
D) contributed to significant changes in foreign affairs policy
Answer: B
Diff: 1 Type: MC Page Ref: 354
Skill: Recall
Objective List: 15.1 Classify the institutional structure of the Bank of Canada as well as four of
the most important foreign central banks
7) The main motivation for the formation of the Bank of Canada in 1934 was .
A) financial
B) the need for Canada to reflect its growing political independence from Britain
C) the need for Canada to coordinate its international trade policy
D) government debt
Answer: B
Diff: 1 Type: MC Page Ref: 354
Skill: Recall
Objective List: 15.1 Classify the institutional structure of the Bank of Canada as well as four of
the most important foreign central banks
171
© 2014
about:bl 2/
,9/12/24, 3:39 Doc -
PM Macroeconomics
8) The Bank of Canada has regional offices in which of the following cities?
A) Saskatoon
B) Edmonton
C) Montreal
D) Winnipeg
Answer: C
Diff: 1 Type: MC Page Ref: 354
Skill: Recall
Objective List: 15.1 Classify the institutional structure of the Bank of Canada as well as four of
the most important foreign central banks
9) The Bank of Canada has regional offices in the following cities, except .
A) Toronto
B) Vancouver
C) Edmonton
D) Halifax
Answer: C
Diff: 1 Type: MC Page Ref: 354
Skill: Recall
Objective List: 15.1 Classify the institutional structure of the Bank of Canada as well as four of
the most important foreign central banks
10) The oldest central bank, having been founded in 1656, is the .
A) Riksbank, the central bank of Sweden
B) Deutsche Bundesbank
C) Bank of Japan
D) Federal Reserve System
Answer: A
Diff: 1 Type: MC Page Ref: 354
Skill: Recall
Objective List: 15.1 Classify the institutional structure of the Bank of Canada as well as four of
the most important foreign central banks
172
© 2014
about:bl 3/
, 9/12/24, 3:39 Doc -
PM Macroeconomics
15.2 Formal Structure of the Bank of Canada
1) Which of the following are entities of the Bank of Canada?
A) The Office of the Superintendent of Financial Institutions (OSFI)
B) The Governing Council
C) The Canada Deposit Insurance Corporation (CDIC)
D) The Federal Reserve
Answer: B
Diff: 1 Type: MC Page Ref: 355
Skill: Recall
Objective List: 15.1 Classify the institutional structure of the Bank of Canada as well as four of
the most important foreign central banks
2) Which of the following are entities of the Bank of Canada?
A) The Office of the Superintendent of Financial Institutions (OSFI)
B) The Board of Directors
C) The Canada Deposit Insurance Corporation (CDIC)
D) The Department of Finance
Answer: B
Diff: 2 Type: MC Page Ref: 355
Skill: Recall
Objective List: 15.1 Classify the institutional structure of the Bank of Canada as well as four of
the most important foreign central banks
3) All of the following have served as Bank of Canada governors except for .
A) Roy Romanow
B) David Dodge
C) Gordon Thiessen
D) John Crow
Answer: A
Diff: 1 Type: MC Page Ref: 355
Skill: Recall
Objective List: 15.1 Classify the institutional structure of the Bank of Canada as well as four of
the most important foreign central banks
4) Which of the following is an element of the Bank of Canada?
A) The Office of the Superintendent of Financial Institutions (OSFI)
B) The Governing Council
C) The Board of Directors
D) Only B and C of the above are Bank of Canada entities.
Answer: D
Diff: 1 Type: MC Page Ref: 355
Skill: Recall
Objective List: 15.1 Classify the institutional structure of the Bank of Canada as well as four of
the most important foreign central banks
173
© 2014
about:bl 4/
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