If LVTS Participating Financial Institutions Have Insufficient Settlement Balances ________

question 74

Multiple Choice

If LVTS participating financial institutions have insufficient settlement balances ________.

• A) they can borrow from each other in the pre-settlement trading period at the bank rate
• B) they can borrow from each other in the pre-settlement trading period at the overnight rate
• C) they can borrow from the Bank of Canada
• D) Only B and C of the above.

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Definitions:

Mechanization

The process of changing from manual labor to machinery for performing tasks, increasing efficiency and productivity.

Specialized Labor

Workforce with specific skills or knowledge, often requiring extensive training and education, tailored to certain industries or occupations.

Mass Production

The manufacture of large quantities of standardized products, often using assembly lines or automated technologies.

Utility

A term in economics referring to the total satisfaction received from consuming a good or service.