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Financial Statements of NPO

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Question

Give Reasons or Explain the following:
Clearing house system economies the use of cash.

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Solution

A clearing house system is a system that facilitates exchange or clearance of payments, securities, or derivatives transaction between two clearing firms who are also known as member firms in order to bring efficiency in the use of cash by adjusting cash transaction between these parties.

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Q. Clearing house system economies the use of cash.

Q. Give reason or Explain
Clearing house system economies the use of cash.

Q. Give reasons or explain.

1. Clearing house system economises the use of cash.
2. Central Bank acts as a lender of the last resort.
3. The CRR affects the lending capacity of the banks.
4. As a banker to the government, the Central Bank transfers government funds.
5. A Central Bank may take 'Direct Action' against the defaulting commercial banks.

Q. State whether the following statement is True or False.
Clearing house system economizes the use of cash.

Q. Give Reasons or explain the following statements.
Macro Economics deals with whole economy.

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