TeachMeFinance.com - explain Exchanges
Exchanges -- The exchanges at a clearing house are the items
(checks, drafts, etc.,) which are presented by creditor banks
(banks which hold them for collection) and are received by
debtor banks (banks which are to pay them). In the operation
of making exchanges each bank presents the items which
it holds against all other banks and receives in return the items
which all other banks hold against it.
For additional information see Clearing house of the associated
banks of New York.
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