Asked by Reshelle Ytuarte on Jul 25, 2024
Verified
The process of transferring Federal Reserve deposits among banks as paid checks is called
A) savings.
B) check clearing.
C) lending.
D) reconciliation.
Federal Reserve Deposits
Reserves held by commercial banks at the Federal Reserve, which are used to meet reserve requirements and facilitate day-to-day banking operations.
Check Clearing
The process by which banks settle transactions made by checks, ensuring that the funds move from the check writer's account to the recipient's.
- Understand the role of check clearing in the banking system.
Verified Answer
FT
Faith ThrockmortonJul 26, 2024
Final Answer :
B
Explanation :
Check clearing is the process of transferring Federal Reserve deposits among banks as paid checks. Savings is not related to this process, lending involves loans, and reconciliation involves balancing accounts.
Learning Objectives
- Understand the role of check clearing in the banking system.