Which of the following statements does NOT describe a real limitation to monetary policy?
A)The world has become global in all markets, including financial markets, and the Bank of Canada does not have control over international banks.
B)It is essentially very difficult to get a policy decision enacted because the Bank of Canada is controlled by Parliament.
C)Monetary policy has to be carried out through the chartered banking system.
D)Fiscal policy is sometimes at odds with monetary policy.

Question

Quizplus · Accepted Answer

The statement that getting a policy decision enacted is difficult because the Bank of Canada is controlled by Parliament is incorrect. In fact, the Bank of Canada Act provides the Bank with operational independence from the government. Monetary policy decisions are made by the Bank's Governing Council, which is not controlled by Parliament.

Which of the Following Statements Does NOT Describe a Real