Check-clearing

(noun)

The movement of a check from the depository institution at which it was deposited back to the institution on which it was written; the movement of funds in the opposite direction and the corresponding credit and debit to the accounts involved.

Examples of Check-clearing in the following topics:

  • The Check Clearing Proces

    • The Fed has the authority to clear checks, and the check clearing process can cause bank reserves and the money supply to fluctuate through the Federal Reserve float.
    • Computer firm deposits the check in its bank account.
    • Subsequently, its bank sends the check to the Fed because the Fed can clear the check between your bank and the computer firm's bank.
    • Your check for $1,000 no longer exists in two places.
    • Check clearing process is a long-drawn-out process because if you write a check for $100 and
  • The Fed as a Check Clearer

    • The Fed created a nationwide check-clearing system that provided an efficient and stable way of transferring funds between institutions.
    • Check clearing also encompasses the return of a check (for insufficient funds, for example) from the bank on which it was written to the bank at which it was deposited, and the corresponding movement of funds. "
    • Because some banks refused to clear checks from certain others during times of economic uncertainty, a check-clearing system was created in the Federal Reserve system.
    • To address these problems, Congress gave the Federal Reserve System the authority to establish a nationwide check-clearing system.
    • Explain why a check clearing system was created under the Federal Reserve system
  • Managing Float

    • Float is the term used to represent duplicate money present between the time a deposit is made and when the deposit clears the bank.
    • Float is most apparent in the time delay between a check being written and the funds to cover that check being deducted from the payer's account.
    • Once the payee's bank notifies the payer's bank of a pending check, the duplicate funds will be removed from the payer's account and the checks will be considered to have cleared the bank.
    • In check clearing, bank float and customer float are present.
    • Before electronic check clearing, bad weather or communication problems often caused float to significantly increase, as the clearing of checks was delayed.
  • The Fed's Balance Sheet

    • For instance, the students learn how the Fed clears a check between two banks.
    • Items in the Process of Collection (CIPC) are assets that arise from the Fed's check clearing process, and it equaled $138 million in 2012.
    • We show the check clearing process in this chapter.
    • Deferred Availability Cash Items (DACI) are liabilities that arise from the Fed's role in the check-clearing process, which was $779 million in 2012.
    • We explain the check clearing process in this chapter.
  • Chapter Questions

    • Explain how the Federal Reserve clears a check between two banks.
  • Step 6: Editing and Proofreading

    • Editing looks at your work on a sentence-by-sentence level, considering ways to make everything you say as clear and precise as possible.
    • Be sure to check for the following.
    • Pronoun clarity: Make sure it's clear what each "it," "he," and "she" refers to.
    • When in doubt, always check a dictionary to be sure.
    • Clear doesn't mean boring, by the way.
  • Payments

    • This is the total time between when an obligation occurs and when the payment clears the bank.
    • Mailing checks from locations not close to customers.
    • Disbursing checks from a remote bank.
    • This will increase the time required for the payment to clear the bank.
    • Clearance float, or the time spent for a payment to clear the bank.
  • Checking model assumptions using graphs

    • Simple and effective plots can be used to check each of these assumptions.
    • This plot is helpful to check the condition that the variance of the residuals is approximately constant.
    • Reporting a flawed model can be reasonable so long as we are clear and report the model's shortcomings.
    • In the two-level variable for the game's condition, we check for differences in distribution shape or variability.
    • For numerical predictors, we also check for trends or other structure.
  • Bitcoins

    • A miner can earn transactionfees and receives newly created Bitcoins by clearing transactions.
    • Next, the seller deposits the check into his or her bank account.
    • Seller's bank sends information about the check to the clearinghouse and the clearinghouse checks with your bank.
    • Your bank checks your balance ensuring you have enough funds in the account to pay the check.
    • Then your bank reduces your account by $500 while the seller's bank adds $500 to his or her account, thus clearing the transaction.
  • Checking model assumptions using graphs exercises

    • The residuals vs. length of gestation plot also does not show any clear or strong remaining structures, with the possible exception of very short or long gestations.
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