In the Bank of Canada's consolidated balance sheet, the largest asset is:
A)loans to chartered banks.
B)notes in circulation.
C)government deposits.
D)government securities.

Question

Quizplus · Accepted Answer

The Bank of Canada's largest asset is government securities, which are primarily long-term bonds issued by the federal government. These securities are purchased by the Bank of Canada in order to manage the money supply and achieve its monetary policy objectives. Notes in circulation and loans to chartered banks are also significant assets on the Bank of Canada's balance sheet, but they are not as large as government securities. Government deposits, on the other hand, are liabilities on the Bank of Canada's balance sheet, not assets.

In the Bank of Canada's Consolidated Balance Sheet, the Largest