At the end of each working day,any bank with a surplus of funds will use the ________ to lend funds to another bank that is short of funds,charging the ________ rate.
A) Large Value Payment System;overnight
B) Large Value Transfer System;overnight
C) Large Value Wire System;bank
D) Financial Wire System;bank
E) Transfer Payment System;prime business

Question

Quizplus · Accepted Answer

The correct system is the "Large Value Transfer System" (LVTS) used in Canada, and the rate charged is the "overnight" rate, which is the interest rate at which banks lend funds to each other overnight.

At the End of Each Working Day,any Bank with a Surplus