Desired reserves consist of

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Desired reserves consist of both deposits in the Bank of Canada and vault currency cash, as these are the primary sources of funds that banks can use to meet their reserve requirement obligations. While deposits in the Bank of Canada alone could technically meet reserve requirements, vault currency cash is also counted because it is readily available for use in transactions and is counted towards a bank's overall holdings of reserve assets. Savings and chequing accounts alone would not be considered part of desired reserves, as they are not part of a bank's reserve assets.

Desired Reserves Consist of