Question

A clearing corporation agent or depository for securities transactions A) can never be a corporation. B) must be a broker-dealer. C) can be a commercial bank. D) can be a bank or corporation only if they are also a broker-dealer.

Answer 1

Answer: can be a commercial bank

Step-by-step explanation:

It should be noted that clearing agent are usually broker-dealer but apart from the fact that clearing agents are broker dealers, it should be noted that they can also be commercial banks.

Commercial banks perform roles of clearing agents as they can help in clearing transactions that have to do with securities and also help in keeping such securities.