In Canada, Electronic Methods of Payment Account for a Larger

question 89

True/False

In Canada, electronic methods of payment account for a larger number of transactions, but a lower aggregate dollar value than non-electronic methods of payment.

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Definitions:

Excess Reserves

The funds that banks hold over and above the legal requirement set by a central bank or banking regulator.

Commercial Bank

A firm that engages in the business of banking, accepting deposits, offering checking accounts, and making loans.

Deposit Expansion Multiplier

A ratio that measures the potential increase in money supply from an initial deposit through the banking system's ability to lend and create money.

Reserve Requirement

The minimum amount of reserves a bank must hold against its deposits, as mandated by monetary authorities, to ensure banking stability.