Bank reserves are:

Question

Bank reserves are:

Quizplus · Accepted Answer

Bank reserves are the sum of the currency that a bank holds in its vaults and its deposits held at the central bank (in Canada, the Bank of Canada). This includes both physical currency (coins and bills) as well as electronic deposits. Option A is incorrect because it only considers physical currency held in bank vaults. Option B is incorrect because bank reserves are not directly tied to CDIC insurance premiums. Option D is incorrect because bank reserves refer only to the portion of deposits that banks hold in reserve, not the entire amount of chequable bank deposits.

Bank Reserves Are