Ch. 7-Bank of Canada pumps more into financial system

http://ctv2.theglobeandmail.com/servlet/story/RTGAM.20080429.wbankofcanada0429/business/Business/businessBN/ctv-business

The article explains that the Bank of Canada, in order to ease the credit conditions in the country's financial system has put in another 2 billion dollars into the system. The roll over of money was not expected, but it does reflect the bank's view on how credit would be too difficult for Canada. This has been the fourth cash deposit since December, bringing the total to 12 billion dollars. The banks has stated that the injection of money was “continuing provision of liquidity in support of the efficient functioning of financial markets.”

This article relates to chapter 7 due to its relationship with the Bank of Canada. In chapter 7 the Bank of Canada was a main topic of discussion due to the Bank's impact in our economy. The Bank of Canada is like the head of all banks in Canada, it is essentially the central bank in Canada. The Bank of Canada is in charge of issuing bank notes in Canada, therefore the circulation of money can be impacted by any changes to do with the Bank of Canada. With more money the bank the cashflow of money will not likely decrease.