Question 263

In response to the economic instability of the Great Depression, what major financial institution was created in 1934 to manage Canada's money supply and stabilize the financial system?

  1. AThe Hudson's Bay Company
  2. BThe Bank of Canada
  3. CThe Montreal Stock Exchange
  4. DThe Royal Canadian Mint
Show the answer and explanation

Correct answer: B) The Bank of Canada

Explanation

During the Great Depression, there was a growing demand for government intervention in the economy. The Bank of Canada, a central bank, was created in 1934 to manage the money supply and bring stability to the financial system.

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