On Fedwire, Daylight Overdraft

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.