506 #
© 2014 Pearson Canada Inc.#
The risk to the entire payments system due to the inability of one financial institution to fulfill
its payment obligations in a timely fashion is known as ____.
A) systemic risk
B) the principal-agent problem
C) moral hazard
D) credit risk
Answer: A
Diff: 1 Type: MC Page Ref: 404
Skill: Recall
Objective List: 17.1 Characterize the framework for the implementation of monetary policy in
Canada
Although transactions in the LVTS account for less than ____ of the total number of
transactions, they account for about ____ of the value of transactions.
A) 1 percent; 94 percent
B) 5 percent; 90 percent
C) 10 percent; 85 percent
D) 20 percent; 80 percent
Answer: A
Diff: 1 Type: MC Page Ref: 404
Skill: Recall
Objective List: 17.1 Characterize the framework for the implementation of monetary policy in
Canada
The Large Value Transfer System (LVTS) ____.
A) was introduced on February 4, 1999
B) is the core of the Canadian payments system
C) is an electronic net settlement network designed to provide settlement to paper-based
payments items
D) Only A and B of the above.
Answer: D
Diff: 1 Type: MC Page Ref: 404
Skill: Recall
Objective List: 17.1 Characterize the framework for the implementation of monetary policy in
Canada