In the Consolidated Balance Sheet of the Bank of Canada

question 114

Multiple Choice

In the consolidated balance sheet of the Bank of Canada, chartered bank reserves held by the Bank of Canada are:

• A)a liability of the Bank of Canada and chartered banks.
• B)an asset of the Bank of Canada and chartered banks.
• C)a liability of the chartered banks and an asset for the Bank of Canada.
• D)an asset of the chartered banks and a liability for the Bank of Canada.

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Definitions:

Liability

A cost when a corporate’s responsibility has not been met.

Partnership

Exists when two or more persons associate to conduct a business.

Regulations

Regulations are rules or directives made and maintained by an authority to control or govern behavior within a specific system.

Intrinsic Value

The inherent worth of an asset, security, or company that is determined through analytical methods and underlying perceptions of its true value, beyond its current market price.