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    • Question

      The process by which a bank converts the cheques and

      other instruments deposited by customers into cash is known as:
      A Clearing Correct Answer Incorrect Answer
      B Discounting Correct Answer Incorrect Answer
      C Overdraft Correct Answer Incorrect Answer
      D Collection Correct Answer Incorrect Answer

      Solution

      Clearing is the banking process of exchanging cheques and other payment instruments between banks to settle the amounts and facilitate the transfer of funds from the payer's account to the payee's account.

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