Which of the Following Is an Institution Created to Facilitate

question 16

Multiple Choice

Which of the following is an institution created to facilitate the exchange of checks and drafts drawn by banks on one another, as well as to enable banks to settle their daily balances?

• A) A clearinghouse
• B) A transferring institution
• C) A facilitating institution
• D) An acknowledging institution
• E) An approval institution

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Definitions:

Corporate Bond

A debt security issued by a corporation to raise funding for capital-intensive activities, paying periodic interest.

Long-Term Bond

A bond that has a maturity period typically longer than ten years, providing the bondholder with interest payments over an extended period.

Medium-Term Bond

A bond that has a maturity period typically ranging from one to ten years, serving as a middle ground between short-term and long-term investments.

Canada Call

A feature of certain bonds allowing the issuer to redeem the bond before maturity exclusively within Canada.