Question

WHAT IS THE BANK OF CANADA? WHAT ARE THE 4 THINGS BANK OF CANADA DO? WHAT IS THE FEDERAL GOVERNMENT OF CANADA? WHAT IS THE PROVINCIAL GOVERNMENT OF B.C.? WHY DID CANADA SURVIVE THE 2008 FINANCIAL CRISIS? WHY IS THERE A RECESSION RIGHT NOW IN CANADA?

Answer 1

The Bank of Canada is a crown corporation and Canada's central bank.

The Bank of Canada does 4 things ie it has rsponsibility in 4 areas-monetary policy which states the supply of money which is circulating in the Canadian economy,currency,it is responsiblefor issuing bank notes and for designing it ,and lastly it manages funds.In addition , Bank of Canada manages the public debt and foreign exchange reserves of Canadian government.

Canada has 3 levels of government , federal, provincial and municipal.The federal government is responsible for national affairs.The federal government has the power to coin money ,has power in the regulation of commerce,can maintain armed forces and declare war,and can establish post office.

Provincial government of Canada is responsible for education ,health, natural resources, road regulations . They also try to share the responsibility of the federal government.

Canada was exempt from financial crisis because the government did not have to bail out insolvent firms. Until the 1980's Canada's financial institutions were highly unregulated but later they were tightly regulated, and have leverage restrictions and less off balance sheet work.So the effect of the 2008 recesion was milder in Canada than in America and Europe.

Canada has entered a recession recently because of the covid 19 devastation .Growth has been only 1.8% in 2020. Less consumer spending has been responsble for less growth of the economy.