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

Question

Quizplus · Accepted Answer

LVTS participating financial institutions can borrow from each other in the pre-settlement trading period or from the Bank of Canada if they have insufficient settlement balances. Therefore, choice A and B are correct. However, there is no mention of borrowing at the prime rate specifically, so choice C is not correct.

If LVTS Participating Financial Institutions Have Insufficient Settlement Balances ________