What does the banking term "float" reference?
A)The time it takes to convert a time instrument to a demand instrument.
B)The time it takes a check to go through the traditional check-clearing process and be paid.
C)The time it takes a bank authority to report a bad check to the issuing bank.
D)The time it takes to convert a nonnegotiable instrument to a negotiable instrument.
E)The time it takes to convert a demand instrument to a time instrument.

Question

Quizplus · Accepted Answer

A)The term "float" references the time it takes for a check to go through the
traditional check-clearing process and be paid.
B)The term "float" references the time it takes for a check to go through the traditional check-clearing process and be paid.
C)The term "float" references the time it takes for a check to go through the traditional check-clearing process and be paid.
D)The term "float" references the time it takes for a check to go through the traditional check-clearing process and be paid.
E)The term "float" references the time it takes for a check to go through the traditional check-clearing process and be paid.

What Does the Banking Term "Float" Reference