Question

Which of the following best describes the function of a commercial bank acting as a “Clearing House Member”?

• A. Settling mutual claims and liabilities between banks through cheque and draft exchanges
• B. Issuing demand drafts and banker’s cheques to customers
• C. Providing custodial services for securities
• D. Granting inter-bank loans and advances

Answer 1

Answer:

A. Settling mutual claims and liabilities between banks through cheque and draft exchanges

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