Today is 14 May 2022 and we have the correct solution for the crossword clue "A financial institution in which cheques drawn on member banks are cancelled against each other so that only net balances are payable" listed below:
Understanding Today's Crossword Puzzle
The clue for today's crossword puzzle is "A financial institution in which cheques drawn on member banks are cancelled against each other so that only net balances are payable". The answer for this clue is "CLEARING HOUSE". Let's dive into why this answer fits the clue.
A clearing house is a financial institution that plays a crucial role in the processing of checks and transactions between different banks. It acts as an intermediary that facilitates the exchange of money between banks and ensures that the transactions are settled efficiently.
Here's why "CLEARING HOUSE" is the correct answer:
- Financial Institution: The clue indicates that the answer is a financial institution. A clearing house falls into this category because it deals with the financial operations and transactions of banks.
- Cheques drawn on member banks: A clearing house is responsible for processing checks drawn by customers from different member banks. It acts as a central hub that receives and verifies these checks.
- Cancellation of cheques against each other: To simplify the settlement process, a clearing house cancels out the checks received from different member banks against each other. This means that the amount owed by one bank to another is reduced by the corresponding checks.
- Net balances: Once the checks are cancelled against each other, only the net balances are payable between the member banks. This means that the banks settle their transactions by paying or receiving the difference between the total checks they received and the total checks they submitted through the clearing house.
In conclusion, the answer "CLEARING HOUSE" perfectly matches the given clue as it represents a financial institution where checks drawn on member banks are cancelled against each other, resulting in only net balances being payable. This process ensures smooth and efficient settlement of transactions between banks.
Definition of "CLEARING HOUSE"
a bankers' establishment where cheques and bills from member banks are exchanged, so that only the balances need be paid in cash.
Example :The Crossword clue "A financial institution in which cheques drawn on member banks are cancelled against each other so that only net balances are payable" published 1 time/s & has 1 answer/s.
| Crossword | Date | Answer |
| The Independents Jumbo General | 14 May 2022 | CLEARING HOUSE |
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