The Bank of Canada's largest liability is

Question

Quizplus · Accepted Answer

Notes in circulation outside banks are the Bank of Canada's largest liability, as they represent the physical currency held by the public, businesses, and other entities outside of the banking system. Notes in circulation at banks are also a liability, but they are held within the banking system and thus represent a smaller portion of the Bank of Canada's liabilities. Deposits at members of the CPA and Treasury bills are not liabilities of the Bank of Canada.

The Bank of Canada's Largest Liability Is