Federal Reserve float
A) is the "lag time" required for monetary policy to take effect
B) represents a net extension of credit by the Fed, which increases bank reserves.
C) represents a net liability of the Fed.
D) is DACI minus CIPC.

Question

Quizplus · Accepted Answer

Federal Reserve float occurs when there is a delay in the processing of checks, leading to a temporary increase in bank reserves as the Fed credits banks before debiting others.

Federal Reserve Float