Currency and Bank in Canada Are Interrelated
Currency is an economic term is the physical aspect of nation’s wealth. All the money that is dropped in the bank is part of the currency. Deposited money and the currency both are the part of money but it is not necessary that money is currency. In past coins of gold and silver were represented as money. Every country has different type of currency like pound of England and dollar for Canada. Currency and bank of Canada is interrelated.
All the major countries of the world have central banks. All the crucial decisions are made by these central banks. All the major decisions like rate of interest and supply of money to other countries are part of central banks decision. Through this economic situation of the country is decided. The currency and bank of Canada or any other country depends on this only. The increase or decrease in the rate of any currency in based on these factors only. Many countries are covered by a single bank like European central bank alone faces 16 countries. President Trichet is the head of that bank. It is the duty of the bank to maintain stability and economic growth.
The central bank for Canada is the Bank of Canada. This is the part of integrity and nations currency. The target of inflation for this bank is from two to three percent. This is very old bank more than seventy years old. This was started in year 1935 at Ottawa. For Australia Reserve Bank of Australia is the central bank. It also works like other banks and also commands for full employment of there country. Most of the money around the world is deposited in the Swiss bank that is situated in Switzerland and is central bank. It is one of the largest banks around the world.
