Checks may be cleared by:
A)the Federal Reserve
B)banks in the banking system
C)both the above
D)neither the above

Question

Quizplus · Accepted Answer

Both the Federal Reserve and banks in the banking system clear checks. The Federal Reserve acting as a central clearinghouse for checks between banks facilitates the clearing of checks. The banking system also clears checks for their customers by debiting the payer's account and crediting the payee's account.

Checks May Be Cleared By