CHAPTER 9 · STUDY GUIDE
Canada's Economy
Understand Canada's major economic sectors, natural resources, trade and financial system.
Practice this chapter →A diverse economy
Canada has a diverse economy that includes natural resources, agriculture, manufacturing and a large service sector. Economic activity varies by region because Canada's geography, climate and natural resources vary widely.
Natural resources
Forestry, mining, energy and fishing have played important roles in Canada's economy. Canada has significant supplies of resources such as forests, minerals, oil and natural gas, and freshwater. Resource industries support communities and contribute to domestic and international trade.
Agriculture and manufacturing
Canadian farmers produce crops and livestock in many parts of the country. Manufacturing includes food processing, transportation equipment, machinery and other goods. Modern Canadian industries are connected to domestic and international supply chains.
Services and trade
The service sector includes areas such as finance, retail, transportation, communications, education, health care and professional services. Canada also trades extensively with other countries. Trade supports businesses, workers and consumers by connecting Canadian producers with markets at home and abroad.
Currency and financial institutions
Canada uses the Canadian dollar. The Bank of Canada is the country's central bank and is responsible for monetary policy and other important functions. Canada's banking and financial system supports saving, borrowing, investment and payments.
What to remember for the test
- Canada has a diverse economy with resource, manufacturing and service industries.
- Natural resources have played an important role in Canada's economic development.
- Agriculture is an important industry in several regions.
- Canada trades goods and services internationally.
- The Canadian dollar is Canada's currency and the Bank of Canada is the central bank.