If LVTS participating financial institutions have insufficient settlement balances ________.
A) they can borrow from each other in the pre-settlement trading period at the bank rate
B) they can borrow from each other in the pre-settlement trading period at the overnight rate
C) they can borrow from the Bank of Canada
D) Only B and C of the above.

Question

Quizplus · Accepted Answer

LVTS participants can borrow from each other at the overnight rate, and they can also borrow from the Bank of Canada to ensure they have sufficient settlement balances.

If LVTS Participating Financial Institutions Have Insufficient Settlement Balances ________