An in-house bank:
A)is a separate bank chartered to operate within a business firm.
B)is in fact a set of functions performed by the firm's existing treasury department.
C)assesses the credit standing of the bank's customers.
D)provides banking services for employees.

Question

Quizplus · Accepted Answer

An in-house bank is not a separate bank, but rather a set of functions performed by the firm's treasury department. It centralizes a business's financial management activities such as cash pooling, short-term borrowing and investing, foreign currency management, and intercompany lending. It is not focused on assessing the credit standing of the bank's customers or providing banking services for employees, as these are not the primary functions of an in-house bank.

An In-House Bank