Can the Government of Canada print money and spend it?
If there is a demand for more coins, the Royal Canadian Mint will produce the coins and sell them to financial institutions. Payment for the coins is made to the Receiver General (Government of Canada). The federal government pays the mint for the costs of producing and distributing the coins, and keeps any net revenue. Financial institutions cannot return surplus coinage, but can return smooth or mutilated coins. If there is a demand for more bank notes, the Bank of Canada distributes them to financial institutions. It is ordinary Canadians who determine the demand for bank notes, and the Bank of Canada meets whatever the demand is. People carry cash in their wallets and purses, and businesses hold cash “floats” so they can operate their businesses. Surplus bank notes can be deposited by financial institutions into their accounts at the Bank of Canada. Financial institutions have accounts with the Bank of Canada chiefly so that they may participate in the clearing and settlement of pa
