Clearing House (Noun)
Meaning
A central collection place where banks exchange checks or drafts; participants maintain an account against which credits or debits are posted.
Classification
Nouns denoting groupings of people or objects.
Examples
- The regional clearing house processed thousands of checks daily, ensuring that banks and financial institutions could manage their transactions efficiently.
- Each morning the traders checked their accounts at the clearing house to verify if their transactions had been settled correctly.
- As a major participant in the stock exchange, the brokerage firm relied on the clearing house to facilitate the buying and selling of securities.
- The Federal Reserve acted as the central clearing house, overseeing the flow of funds between banks and ensuring the stability of the financial system.
- The electronic clearing house allowed for rapid transfer of funds and settlement of transactions, reducing the risk of errors and disputes.