Collections Float Tends to Offsets Disbursement Float

question 22

True/False

Collections float tends to offsets disbursement float. If a firm's average collection float exceeds its average disbursement float, then it is said to be operating with positive net float.

---

Definitions:

Extraordinarily High Inflation

A situation where the price level rises at an excessively rapid rate, severely eroding purchasing power over a short period.

Money Creation

The process by which the money supply of a country or an economic or monetary region is increased.

Government Spending

The total expenditure incurred by a government in funding its operations and services, including infrastructure, public services, and welfare programs.

Nominal Interest Rate

The nominal interest rate represents the rate of interest before adjustments for inflation, indicating the percentage increase in money lenders earn or borrowers pay over a specific period.