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