Which of the following describes a primary bank?

The description of a primary bank aligns with its role in facilitating the movement of money and providing essential banking services. A primary bank typically serves as a financial institution that accepts deposits, provides loans, and offers a range of services to individuals and businesses. Money transmission services or clearing systems are key components of a primary bank's responsibilities as they enable the efficient transfer of funds between banks and customers, helping to maintain liquidity and support economic transactions.

This matches the functions of a primary bank, which is essential in the overall banking system. In contrast, investment firms focus primarily on investment management and advisory services, while insurance providers are dedicated to risk management through insurance products. Credit unions, while they offer similar services to banks, are member-owned cooperatives typically providing financial services on a smaller, community-oriented scale. Thus, the role of a primary bank aligns closely with money transmission and clearing services that are foundational to the banking industry's operations.