__________ is an institution of credit where reciprocal liabilities of local banks are counterbalanced…
A clearing house offsets the reciprocal claims and liabilities of participating banks. This permits settlement of their net balances instead of separate settlement of every…
Choose your answer
__________ is an institution of credit where reciprocal liabilities of local banks are counterbalanced against one another.
Answer and explanation
Correct answer A
A clearing house offsets the reciprocal claims and liabilities of participating banks. This permits settlement of their net balances instead of separate settlement of every individual claim.
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Maharashtra and Goa SET (MH SET)