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

question 105

Multiple Choice

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.

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Definitions:

Process Costing

A costing method used in production where costs are assigned to processes and then averaged over all units produced.

Job-Order Costing

An accounting method that assigns costs to specific jobs or batches, used in industries where goods or services are produced on a custom basis.

Process Costing

An accounting methodology that traces and accumulates direct costs, and allocates indirect costs, of a manufacturing process. Costs are assigned to products, usually in a large batch, which might include an entire month's production.

Job-Order Costing

A costing method used in manufacturing, where costs are assigned to specific jobs or batches, ideal for customized orders.