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What is meant by the following function of the central bank? Clearing house - Economics

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प्रश्न

What is meant by the following function of the central bank?

Clearing house

What is a clearing house?

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उत्तर

The central bank functions as a clearinghouse to facilitate the transfer and settlement of mutual claims among commercial banks. It offers clearinghouse services in major cities and commercial hubs. This system is straightforward, efficient, time-saving, and cost-effective for resolving interbank claims.

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Function of Central Bank - Bank of Issue
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अध्याय 22: Model Short Answer Questions - MODEL SHORT ANSWER QUESTIONS [पृष्ठ ४८१]

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फ्रैंक Economics [English] Class 12 ISC
अध्याय 22 Model Short Answer Questions
MODEL SHORT ANSWER QUESTIONS | Q 192. | पृष्ठ ४८१
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