Reserves held by the Canadian banks represent less than 1 percent of demand deposits.

Question

Quizplus · Accepted Answer

This statement is true. As of 2021, the minimum reserve requirement for Canadian banks is 0.25% of their total Canadian dollar demand deposits, and many banks hold reserves that are higher than this minimum requirement. However, even the highest reserve holdings among Canadian banks still represent less than 1% of their demand deposits.

Reserves Held by the Canadian Banks Represent Less Than 1