What is float?
A)Overnight payments via CHIPS or Fedwire.
B)Encoding, endorsing, microfilming, and handling customers' checks.
C)Time it takes a check to clear at a bank.
D)Management of multiple currency and security portfolios for trading and investment purposes.
E)Interval between the dispatch of a bill and actual payment by the consumer.

Question

Quizplus · Accepted Answer

Float is the time it takes for a check to clear at a bank. It refers to the gap between the time a payment is initiated and when it is made available as good funds in the recipient's account.

Answer: E
 Float is also sometimes used to refer to the interval between the dispatch of a bill or invoice and the actual payment by the consumer. In this context, it represents the gap between when a payment is due and when it is actually made.

What Is Float