The reserve-deposit ratio is determined by:
A)the Bank of Canada.
B)business policies of banks and opportunities for banks to lend.
C)preferences of households about the form of money they wish to hold.
D)the Canada Deposit Insurance Corporation (CDIC).

Question

Quizplus · Accepted Answer

The reserve-deposit ratio is influenced by the business policies of banks and their opportunities to lend, as banks decide how much of their deposits to keep in reserve versus how much to lend out.

The Reserve-Deposit Ratio Is Determined By