Financial system Assignment Example | Topics and Well Written Essays - 1250 words

Financial system - Assignment Examplerough taxation of the various economic activities and in turn providing essential services such as health care, public mortgages affordable, education, and defense.The governments are always non taxing directly, exclusively their presence if often felt through the regulatory concept that they execute in areas such as licensing, wage bill, foreign ownership, and safety of products. The concept of macroeconomics often focuses on the details in the market for particular goods and services instead of the economic principles such as unemployment, economic growth, total output, and inflation. The macroeconomic policy divides the economy into monetary policy and fiscal policy.Fiscal policy refers to the set of decisions that the government makes in consideration of spending, taxation, and spending. There are various dimensions for the governments fiscal policy specifically at the central level because revenue can be earned through various kinds of taxe s and it can fall out on infinite products in separate geographic regions aiming at different beneficiaries (Fender, 2012).Monetary policy refers to the allurement of decisions that a government make through the central bank of state concerning the issue of the amount of gold that circulates within the economy. In Canada, the monetary policy is done through the adjustment of very short- term care rates in order to achieve a rate of monetary expansion. This depends on the maintenance of a minimum and stable rate of inflation.The monetary policy is operated by the bank of Canada. A major fraternity of crown is under the supervision of the government. Therefore, there is a considerable independence from the central government but not a major issue in the legislative context.Since the pecuniary capital can geological period easily and smoothly within the state of Canada, the interest rates on the same assets are never-ending across all different geographic regions in Canada. Thi s has eventually made an outcome of one financial policy or