What are the reserves of a commercial bank?

Question

Quizplus · Accepted Answer

Reserves of a commercial bank refer to the deposits that the bank maintains at the central bank (Bank of Canada in this case) and the cash held in the bank's vault. Therefore, the correct answer is deposits at the Bank of Canada and vault cash (option B). Option E is also partially correct as it includes both of these components but also includes securities, which do not necessarily have to be a part of a bank's reserve holdings.

What Are the Reserves of a Commercial Bank