Due to a flood in the Canadian prairies, cheques drawn on the banks in the affected area are delayed several days in reaching the payees' banks for payment. This represents an increase in _____________ float for the firms writing the cheques.

Question

Quizplus · Accepted Answer

This scenario describes an increase in disbursement float, which is the time delay between when a cheque is written and when the funds are actually withdrawn from the payer's account.

Due to a Flood in the Canadian Prairies, Cheques Drawn