Why Might a Bank Choose to Hold Secondary Reserves,such as Canadian

Multiple Choice

Why might a bank choose to hold secondary reserves,such as Canadian Treasury bills?

A) They pay lower interest rates than deposits at the Bank of Canada and are hard to convert into cash assets.
B) They pay higher interest rates than deposits at the Bank of Canada, even though they are hard to convert into assets.
C) They pay lower interest rates than deposits at the Bank of Canada, but are more easily converted into cash assets.
D) They pay higher interest rates than deposits at the Bank of Canada and are easily converted into cash assets.