What is a commercial bank's actual reserve ratio?
A) The fraction of its deposit liabilities that it actually holds as gold,other precious metal or cash in its own vaults.
B) The fraction of its deposit liabilities that are backed by gold.
C) The ratio of Canadian dollars to foreign currencies that it holds on its books.
D) The ratio of chequable deposits to term deposits that it holds on its books.
E) The fraction of its deposit liabilities that it actually holds as reserves,either as cash or as deposits with the Bank of Canada.
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