Chartered Bank Reserves Are an Asset to Chartered Banks but a Liability

question 44

True/False

Chartered bank reserves are an asset to chartered banks but a liability to the Bank of Canada holding them.

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Definitions:

Consolidated Statement

Financial statements that aggregate the financials of a parent company and its subsidiaries, presenting the finances as if the group were a single entity.

Cost Method

An accounting approach where investments are recorded at their acquisition cost, without adjusting for changes in market value unless there is a decline in value judged to be other than temporary.

Controlling Interest

Ownership interest in a business entity through which a party has the power to influence or direct its policies and management.

Consolidated Net Income

The total net income of a parent company and its subsidiaries, after eliminating intercompany transactions.