Which of the following factors tends to reduce or eliminate the use of float?
A) lenient credit policies.
B) large cash balances.
C) electronic funds transfers.
D) high interest rates.

Question

Quizplus · Accepted Answer

Electronic funds transfers reduce the use of float because transactions are processed in real-time and there is no delay in funds reaching the recipient's account.

Which of the Following Factors Tends to Reduce or Eliminate