Concept:A clearing house is the central institution where banks settle mutual debts and claims.
Explanation:During a banking day, banks receive many cheques and payment instruments drawn on other banks.
Instead of transferring cash for every single transaction, banks send all these instruments to the clearing house.
There, the total amount each bank owes and the total amount each bank is owed are set off against each other.
Only the net balance or difference is then paid in cash by the banks concerned.
Therefore, the clearing house enables banks to settle their indebtedness efficiently with minimal cash movement.
Answer:D. clearing house