The process of settling transactions between banks. Because so many transactions take place between banks on a given day, bank clearing exists to process what each party owes or is owed in a central location so the least amount of money actually changes hands. For example, suppose Bank A owes $1 million to Bank B in cleared checks, but Bank B owes Bank A $1.5 million.
In economics, the minimum efficient scale is described as the lowest level on the long-run average total cost curve. It is also called the output of long-run productive efficiency. The minimum efficient scale is never a single level of output; rather, it is a range of outputs whereby the average cost is reduced. The minimum efficient scale differs from one economic sector to another due to the varying cost structures.
Economic efficiency. In economics, the term economic efficiency refers to the use of resources so as to maximize the production of goods and services. An economic system is said to be more efficient than another if it can provide more goods and services for society without using more resources. In absolute terms, a situation can be called economically efficient if: âNo one can be made better off without making someone else worse off. âNo additional output can be obtained without increasing the amount of inputs. âProduction proceeds at the lowest possible per-unit cost.