________ float is the time that elapses between the deposit of a check by the payee and the actual availability of funds. This component is attributable to the time required for a check to go through the banking system.
A) Mail
B) Processing
C) Clearing
D) Disbursement

Question

Quizplus · Accepted Answer

The term described in the question is the clearing float, which represents the time needed for a check to be cleared by the banking system, and the funds to become available to the payee. This is different from the mail float (time for the check to physically travel to the bank), processing float (time for the bank to process the check information), and disbursement float (time for the payor's account to be debited).

________ Float Is the Time That Elapses Between the Deposit