--%>

Chartered banks

Why do chartered banks kept reserves? 

E

Expert

Verified

Reserves are assets of chartered banks since these funds are cash belonging to them; they are a claim the chartered banks have against the Bank of Canada.

   Related Questions in Finance Basics

  • Q : Change in supply of money Normal 0

    Normal 0 false false

  • Q : Effect of merger activity in the

    How has the merger activity in the past decade influenced the concentration of assets in the banking industry? Over the last decade, the number of commercial banks declined through twenty-one percent and the averag

  • Q : Explain Transfers Transfers : As

    Transfers: As employed in Schedule 10Rs and fund situation statements, transfers replicate the movement of resources from one fund to the other based on statutory authorization or particular legislative transfer appropriation authority.

  • Q : How do financial managers compute the

    How do financial managers compute the average tax rate?Average tax rates are calculated through dividing tax dollars paid by earnings before taxes (EBT).

  • Q : Define Veto Veto : It is the Governor's

    Veto: It is the Governor's Constitutional authority to reduce or remove one or more items of appropriation while accepting other parts of a bill.

  • Q : Why do companies extend trade credit

    Accounts receivable are sometimes not gathered. Why do companies extend trade credit while they could insist on cash for all sales? Extending trade credit approximately leads to more sales for all time. If the incremental cash flows, comprisin

  • Q : Government requirements imposed on

    Describe some of the government requirements imposed onto a public corporation which are not imposed on a private, intimately held corporation? Public corporations ought to submit audited financial statements to the government for release to the

  • Q : Factors affecting option of maximum

    Describe the factors affecting the alternative of a maximum cash balance amount. The maximum cash balance amount is finding out by obtainable investment opportunities, the expected return on investments, and the transaction cost of making invest

  • Q : Define Cash Basis of Accounting Cash

    Cash Basis of Accounting: The base of accounting in which expenditures and revenues are recorded whenever cash is received or distributed.

  • Q : Define Subventions Subventions :

    Subventions: Typically employed to explain amounts of money expended as local assistance based on the formula, in contrast to grants which are provided selectively and frequently on a competitive basis. For the aim of Article XIII B, state subventions