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.
What is 'Efficiency' Efficiency signifies a level of performance that describes a process that uses the lowest amount of inputs to create the greatest amount of outputs. Efficiency relates to the use of all inputs in producing any given output, including personal time and energy. Efficiency is a measurable concept that can be determined by determining the ratio of useful output to total input. It minimizes the waste of resources such as physical materials, energy and time, while successfully achieving the desired output.