The Reserves of a Chartered Bank Consist Of

question 19

Multiple Choice

The reserves of a chartered bank consist of:

• A)the amount of money market funds it holds.
• B)the small deposits at the Bank of Canada and vault cash.
• C)government bonds which the bank holds.
• D)the bank's net worth.

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Definitions:

Direct Materials

Raw materials that can be directly linked to the production of specific goods or services.

Factory Overhead

Indirect costs associated with manufacturing, such as utilities, maintenance, and management expenses, not directly tied to production volumes.

Net Income

The profit of a company after all expenses, taxes, and costs have been deducted from total revenue, reflecting the actual earnings.

Sales Increase

The rise in the quantity or revenue of products sold by a company over a specific period.