Asked by unknown person on May 16, 2024
Verified
________ time is the period between the time a check is written and the time it is presented for final payment, during which time a customer can still use his or her funds.
A) Transfer
B) Electronic
C) Chargeable
D) Float
E) Usable
Float Time
The period between when a bank check is written and when it is actually withdrawn from the payer's account, typically used to advantage cash flow.
- Gain an understanding of the operation and mechanics behind different check types within the banking infrastructure.
Verified Answer
BG
Briana GallardoMay 20, 2024
Final Answer :
D
Explanation :
Float time refers to the interval between when a check is written and when it is cleared and settled by the banking system. During this period, the funds are still available in the payer's account for use.
Learning Objectives
- Gain an understanding of the operation and mechanics behind different check types within the banking infrastructure.