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Assume you bank with and university banks with . Suppose you write a cheque to university for $7,000 to pay for next year tuition fee.
Assume you bank with and university banks with . Suppose you write a cheque to university for $7,000 to pay for next year tuition fee. Explain how your cheque is being cleared in the banking system? Use the cheque-clearing process to help you explain the relationships between bank rate (currently at 1.5%), inter-bank (or target) overnight rate (), and the operating band.
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