Which of the Following Statements About Reserve Ratios at Canadian

question 105

Multiple Choice

Which of the following statements about reserve ratios at Canadian commercial banks is true? Commercial banks in Canada

• A)are required by the Bank Act to hold required reserves.
• B)have a reserve ratio of zero.
• C)have a reserve ratio of 100%.
• D)have a positive reserve ratio.
• E)never have excess reserves.

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Definitions:

Constant Annual Rate

A rate of growth that is uniform from year to year, often used in economic forecasts and analysis to smooth out fluctuations and provide a clear trend.

Basic Research

Investigation into fundamental principles and theories without immediate commercial applications, aimed at expanding knowledge or understanding.

Scientific Discoveries

are findings or breakthroughs that significantly advance knowledge, often leading to new technologies, methods, or understandings in various fields.

Industrial Policy

Government strategies aimed at improving the competitive position and capabilities of domestic industries and firms.