A "float" period can be defined as:
A)the interest charged during one billing period.
B)the principal balance due on a loan.
C)a home equity loan.
D)a certain number of days during which no interest is charged.
E)a lump-sum loan from a credit union.

Question

Quizplus · Accepted Answer

A "float" period refers to a specific timeframe during which no interest is charged on a credit or loan transaction. This is often seen in credit card transactions, where there is a grace period between the purchase and the charging of interest.

A "Float" Period Can Be Defined As