Fill in the blanks with appropriate words.

In Canada, as noted, responsibility for financial system _____(1)____ resides with several federal and provincial entities. In recent years, the Bank has worked at defining its role in this area. The Bank has responsibility for the conduct of monetary policy. Well-run monetary policy both contributes to, and is clearly facilitated by, the presence of a ___(2)___ financial system. In addition, the Bank has legislated ____(3)____ responsibility with respect to systemically important clearing and settlement systems. Further, as a result of the Bank’s ability to create liquidity and its role as lender of last resort, it has an inherent interest in ____(4)___ within the financial system (in terms of both underlying structure, policies, and current developments) that could affect the probability of the Bank acting as ___(5)___ of last resort.

A broader ____(6)____ also underpins the Bank’s role in the financial system. As the public monetary authority, the Bank has developed extensive and _____(7)____ expertise with respect to the Canadian financial system. In conjunction with the substantial macroeconomic knowledge base contained “in-house,” Bank staff are relatively well-positioned to identify and ____(8)____ macro-financial developments and systemwide risks and to provide views on ____(9)____ to foster the appropriate evolution of the financial infrastructure. Thus, the Bank can contribute to analysis of the financial system by applying this expertise, typically from a systemwide perspective to surveillance, policy advice, and research on a range of ____(10)____ activities.