How will widespread adoption of electronic funds transfer affect the use of "float"?
A) It will increase its use somewhat.
B) It will decrease its use somewhat.
C) It will virtually eliminate its use.
D) It will have no effect on its use.

Question

Quizplus · Accepted Answer

Float is the time difference between when a payment is made and when the funds are actually received. With widespread adoption of electronic funds transfer, payments can be processed and cleared much more quickly, virtually eliminating float as there is no need for physical checks to be transported and processed. Therefore, Choice C is the best answer.

How Will Widespread Adoption of Electronic Funds Transfer Affect the Use