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

Disbursement float increases when there is a delay in the time it takes for a cheque to be processed and cleared, which is the case when cheques are delayed due to a flood.

Due to a ﬂOod in the Canadian Prairies, Cheques Drawn