An office where banks exchange checks and drafts and settle accounts, owned by the member banks participating is known as _____.

Question

Quizplus · Accepted Answer

A clearinghouse corporation is an office where banks exchange checks and drafts and settle accounts owned by the member banks participating. The other options are not specific to this function. A collecting bank is where a depositor makes a deposit to their account. A correspondent bank is a financial institution that provides services on behalf of another financial institution. An intermediary bank is a third-party bank that facilitates transactions between two banks. A payor bank is the bank that is responsible for making a payment to a recipient.

An Office Where Banks Exchange Checks and Drafts and Settle