Disbursement Float Is Created by Cheques Which Have Been Deposited

question 33

True/False

Disbursement float is created by cheques which have been deposited into a firm's bank account but which have not yet cleared.

---

Definitions:

Automatic Stabilizer

Economic strategies and initiatives aimed at balancing shifts in a country's economic performance without interference from governmental or policy-making bodies.

Supply-Side

Economic theory that emphasizes the importance of increasing supply (production of goods and services) as the key to economic growth, lower unemployment, and lower inflation.

Federal Budget Deficit

The shortfall in the federal government's budget when its expenditures surpass its revenues.

National Debt

The total amount of money that a country’s government has borrowed by issuing securities, usually through selling bonds.