Checks are cleared between private banks by:
A) The 12 regional Federal Reserve banks.
B) The Executive Branch of government.
C) The Federal Reserve Board of Governors.
D) State banking commissions.

Question

Quizplus · Accepted Answer

Checks are cleared between private banks by the 12 regional Federal Reserve banks. This is done through the Automated Clearing House (ACH) network, which electronically processes transactions between banks. The Federal Reserve banks act as intermediaries, facilitating the transfer of funds between banks and ensuring that the proper balances are maintained.

Checks Are Cleared Between Private Banks By