A system by which firms assign their customers for collection purposes to regional banks that transfer funds to a central bank is known as:

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Concentration banking is a system in which regional banks collect payments from the customers of the firms they serve and transfer the funds to a central bank account. This allows firms to concentrate their funds in a single account and simplify their cash management process. Lock-box systems, zero-balance accounts, and wire transfers are also cash management tools but do not involve the use of regional banks as intermediaries in the collection process.

A System by Which Firms Assign Their Customers for Collection