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

Question

Quizplus · Accepted Answer

Electronic funds transfer is a system that directly transfers money from one bank account to another. The process is instant and eliminates the need for paper checks to be physically processed and cleared, which reduces the time taken for transactions. As a result, there is no need for a "float" period that arises from the delay between the time a check is written and cleared. Therefore, the increased use of electronic funds transfer technology would virtually eliminate the use of "float."

How Would Electronic Funds Transfer Affect the Use of "Float