5 Questions
Which type of checks do not require interbank clearing or settlement?
On-us checks
What are the different ways in which interbank or transit checks can clear and settle?
Direct presentment, correspondent financial institution, clearing house, or Reserve Banks
What do depository financial institutions use to settle the checks they collect?
Accounts on their books or Reserve Bank reserve account
What do smaller depository institutions typically use for check-collection services?
Correspondent financial institutions or Reserve Banks
What is the purpose of the Federal Reserve's National Settlement Service (NSS)?
To effect settlement for checks exchanged each business day
Test your knowledge on how financial institutions clear and settle checks. Learn about the different processes involved for "on-us" checks and interbank or transit checks. Discover how interbank checks can clear and settle through a specific method.
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