Chapter 4

Crown Corporations

Companies owned by federal, provincial, or territorial governments that provide services that businesses do not.

Privatization

A process of selling publicly owned corporations to private entities.

Deregulation

The withdrawal of certain laws and regulations by the government to enhance competition.

Federal Government Responsibilities

Includes trade regulations, incorporation of federal companies, taxation, and healthcare.

Monetary Policy

The management of supply and interest rates by the central bank of Canada.

Fiscal Policy

Federal government's use of taxation and spending to influence the economy, including managing deficits and surpluses.

Bank of Canada

The national bank that sets rules for other banks and manages monetary policy.

Taxation

The process by which the government collects money from individuals and businesses to fund public services.

Transfer Payment

Funds transferred from one government to another, usually to support financial equality among provinces.

Equalization

A financial program that helps provincial governments with lower revenue capacity to provide comparable public services.

Trade Barriers

Obstacles to trade that can be natural, prohibitive, technical, or regulatory.

Government Expenditures

Spending by the government that plays a crucial part in the economy, supporting public welfare and infrastructure.

Public Debt

The total amount of money that a government owes to creditors.