Explain the difference between currency and bank money. which institutions in canada are responsible for producing these two types of money? explain fully.
Question: Explain the difference between currency and bank money. which institutions in canada are responsible for producing these two types of money? explain fully.
Currency is physical money that is issued by the central bank and includes bills and coins. Bank money, on the other hand, refers to the electronic balances held in bank accounts and can be used for transactions through cheques, debit cards, and electronic fund transfers. In Canada, the central bank, the Bank of Canada, is responsible for producing currency while commercial banks are responsible for creating bank money through loans and deposits.
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