If LVTS Participating Financial Institutions Have Insufficient Settlement Balances ________

question 19

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) B and C only.

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Definitions:

Total Fixed Costs

The total of all expenses that do not change with the amount of production or output.

Marginal Cost Curve

A curve that shows the cost of producing one more unit of a good or service, typically upward sloping because of increasing marginal costs.

Average Variable Cost Curve

A graphical representation of the variable cost per unit at different levels of output.

Total Variable Costs

The sum of all costs that vary with the level of output or production in the short run, such as materials and labor expenses.