A severe storm that slows postal delivery will cause

Question

Quizplus · Accepted Answer

A severe storm that slows postal delivery is likely to delay the delivery of checks, resulting in an increase in Federal Reserve float. This is because the checks will take longer to clear, increasing the time it takes for funds to transfer between banks and resulting in higher float. There is no reason to believe that such a storm would directly influence the number of Federal Reserve notes outstanding.

A Severe Storm That Slows Postal Delivery Will Cause