On Fedwire, Daylight Overdraft

question 83

Multiple Choice

On Fedwire, daylight overdraft

• A)is a bank's positive intraday balance in its reserve account at the Fed.
• B)does not occur under the current payments system.
• C)invites a fee is 50 basis points, quoted as an annual rate on the basis of a 24-hour day.
• D)has a seasonal component.
• E)is not a potential source of instability in the financial markets.