Large Value Transfer System (LVTS) participants can make a payment only if they ________.
A) have positive settlement balances in their accounts with the Bank of Canada
B) have posted collateral (such as Government of Canada treasury bills and bonds)
C) have explicit lines of credit with other participants
D) All of the above.

Question

Quizplus · Accepted Answer

LVTS participants are required to have positive settlement balances in their accounts with the Bank of Canada, post collateral such as Government of Canada treasury bills and bonds, and have explicit lines of credit with other participants before making a payment. Therefore, all of the options (A, B, and C) are correct.

Large Value Transfer System (LVTS) Participants Can Make a Payment