Question

Give reasons "Clearing house system economises the use of cash".

Answer 1

All the commercial banks are mandatory required to keep a certain %age of their deposits wid the central bank. the central bank accepts the deposits from the commercial banks and helps in the settlement of interbank claims.this is regarded as a clearing house function of commercial banks. as a clearing house it settles inter bank claims and reduces the need for cash reserves by the commercial banks.

Answer 2

Solutions for most of the questions for Maharashtra State Board can be found ... Give reasons or Explain the following statement ... Clearing house system economises the use of cash.