Asked by James Copper on Jul 02, 2024
Which of the following is an institution created to facilitate the exchange of checks and drafts drawn by banks on one another, as well as to enable banks to settle their daily balances?
A) A clearinghouse
B) A transferring institution
C) A facilitating institution
D) An acknowledging institution
E) An approval institution
Clearinghouse
An intermediary body that facilitates the exchange of payments, securities, or derivatives transactions among its members.
- Comprehend the positions and obligations of banks in the operation of the check clearing house system.
Learning Objectives
- Comprehend the positions and obligations of banks in the operation of the check clearing house system.