The volume of net deferred credit is commonly referred to as:
A) the burden.
B) NOW balances.
C) reserve requirements.
D) equity.
E) float.

Question

Quizplus · Accepted Answer

The volume of net deferred credit is commonly referred to as "float". Float refers to the amount of money temporarily held by a bank after a deposit is made, but before the depositor's account is actually credited. This represents a liability for the bank, and a potential source of revenue, as float can be invested or earn interest for the bank while it is in transit.

The Volume of Net Deferred Credit Is Commonly Referred to As