The term daylight overdraft refers to a situation in which an FI's reserve account at the central bank is negative at the end of a banking day.

Name: The term daylight overdraft refers to a situation in which an FI's reserve account at the central bank is negative at the end of a banking day.
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Daylight overdraft occurs when a financial institution's reserve account at the central bank is overdrawn during the day, but it must be covered by the end of the business day.

The Term Daylight Overdraft Refers to a Situation in Which