An Office Where Banks Exchange Checks and Drafts and Settle

question 29

Multiple Choice

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

• A) collecting bank
• B) correspondent bank
• C) intermediary bank
• D) clearinghouse corporation
• E) payor bank

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Definitions:

Income Tax Rate

The share of an individual's earnings that is paid to the government as a tax.

Straight-Line Depreciation

Straight-line depreciation is a method of calculating the depreciation expense of an asset evenly over its useful life.

Straight-Line Depreciation

A technique for determining an asset's depreciation, presuming that the asset will depreciate by a consistent value annually throughout its projected useful life.

Incremental Sales

The additional revenue generated from a particular business action or decision, beyond existing sales.