Canadian commercial banks maintain their reserves in the form of

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Canadian commercial banks maintain their reserves in the form of cash in their bank vaults and deposits at the Bank of Canada. This is because the Bank of Canada serves as the central bank of Canada and is responsible for implementing monetary policy, issuing and controlling the money supply, and regulating the financial system. Commercial banks must maintain a certain level of reserves at the Bank of Canada to ensure that they have enough funds to meet their obligations to depositors and other creditors. Additionally, holding cash in their vaults provides an additional level of security and accessibility to funds.

Canadian Commercial Banks Maintain Their Reserves in the Form of