A bank's reserves equal its

Name: A bank's reserves equal its
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Question

Quizplus · Accepted Answer

A bank's reserves include its vault cash and deposits held at the Bank of Canada. Therefore, (C) is the correct choice. While deposits of customers may also be considered a liability, they are not considered part of the bank's reserves as they can be withdrawn or transferred out of the bank. The bank's investments (government bonds) and loans to other banks are not considered part of the bank's reserves.

A Bank's Reserves Equal Its