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ld by the Exchange Fund Account of the Department of Finance ? engages in international financial transactions, on behalf of the government, in order to influence exchange rates 8 169。 2023 Pearson Education Canada Inc. Central Banking Services As Canada’s central bank, the Bank of Canada ? serves as the lender of last resort if a bank faces a liquidity crisis, thereby preventing bank runs and panics. This lending is closely coordinated with the two federal regulatory agencies that are set up specifically to regulate financial institutions OSFI and CDIC ? has explicit responsibility for the regulatory oversight of the national payments system, operated by the CPA ? acts as the holder of deposit accounts of the federal government, the directly clearing members of the CPA, international anizations such as the IMF, and other central banks. 9 169。 2023 Pearson Education Canada Inc. Moary Policy Although in Canada the ultimate responsibility for moary policy rests with the government, the Bank employs such tools as ? open market operations and, to a lesser extent, the ? shifting of government balances between it and the directly clearing members of the CPA to implement changes in the M. The Bank’s ultimate objective is to keep ? low. Low ? is closely related to the goal of steady economic growth, because businesses are more likely to invest to increase productivity and economic growth when ? is low. Low ? is also desirable because it protects the purchasing power of pensioners and those on fixed ines. 10 169。 2023 P