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:

Certification

The process of officially recognizing someone or something as having met certain standards through the issuance of a document or label.

Bank Reconciliation

The procedure of aligning the figures in a company's bookkeeping records for a cash account with the equivalent data on a bank statement.

External Auditors

External auditors are independent accounting professionals who examine the financial statements of an organization to ensure accuracy and compliance with applicable standards and regulations.

Internal Control System

Procedures and policies set by an enterprise to preserve the correctness of its financial and bookkeeping details, advance accountability, and obstruct malicious acts.