Float is best described by which of the below?
A) investing excess cash balances
B) the time required for a deposited check to clear through the commercial banking system and be available for payment
C) the term used to describe payment for the purchase of raw materials that are needed to complete production of a luxury liner
D) the time that is required to receive payment on a zero balance account

Question

Quizplus · Accepted Answer

Float refers to the time delay between when a check is deposited and when the funds become available for use. This delay occurs because the banks need time to process the check and transfer funds between accounts.

Float Is Best Described by Which of the Below