"Excess reserves" for a commercial bank refer to
A) any surplus of chequable deposits.
B) any reserves (cash or deposits with the Bank of Canada) that the bank holds over and above its desired reserves.
C) reserves (cash or deposits with the Bank of Canada) that the Bank of Canada requires the bank to hold.
D) any surplus in the bank's supply of gold.
E) excess demand for money from that bank.
Correct Answer:
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