If at the end of the business day a commercial bank is short of cash reserves,what will it do?

Question

Quizplus · Accepted Answer

If a commercial bank is short of cash reserves at the end of the business day, the best choice is to borrow cash from the Bank of Canada. This is because the Bank of Canada acts as a lender of last resort and provides short-term liquidity to banks. Increasing demand deposits or imposing notice requirements may not be sufficient to address the shortage of cash and could also result in dissatisfaction among customers.

If at the End of the Business Day a Commercial