Funds that have been sent by the payer but are not yet usable funds to the payee are

Question

Quizplus · Accepted Answer

Float refers to funds that have been sent by the payer but have not yet become usable funds to the payee. It is the time gap between when the payment is made and when the payment is received and processed by the recipient. Therefore, option A is the correct answer. Option B is incorrect because overdrawn funds refer to the situation where an account holder has withdrawn more money than they have available in their account. Option C is incorrect because funds that have been sent by the payer but are not yet usable by the payee are not available for the use of the payer until they have been processed and cleared by the recipient.

Funds That Have Been Sent by the Payer but Are