The purpose of the local clearinghouses established by banks in the early 1900s was to:

Question

Quizplus · Accepted Answer

The purpose of local clearinghouses established by banks in the early 1900s was to pool the resources of several local banks so that the clearinghouse could guarantee a member's deposits in case of a bank run. This was done to prevent bank failures and to maintain stability in the banking system. The clearinghouse acted as an intermediary between banks, facilitating the exchange of checks, and settling differences in accounts. The other options mentioned in the question are not relevant to the purpose of local clearinghouses.

The Purpose of the Local Clearinghouses Established by Banks in the Early