Which of the Following Is the Best Definition of flOat

question 138

Multiple Choice

Which of the following is the best definition of float?

• A) The difference between book cash and bank cash, representing the net effect of cheques in the process of clearing.
• B) A strategy in which an investor purchases securities to own them on the day of record and then quickly sells them; designed to attain dividends but avoid the risk of a lengthy hold.
• C) Bank makes proceeds of cheques deposited available the same day before cheques clear.
• D) The need to hold cash as a safety margin to act as a financial reserve.
• E) Special post office boxes set up to intercept and speed up accounts receivable payments.

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Definitions:

Peck

A unit of volume for dry goods, historically used in agriculture and equal to about 8.809 or 9 liters in the US and UK respectively.

Bushel

A unit of volume that is used for measuring agricultural commodities, varying in actual volume by the product being measured.

Consumption

The use of goods and services by households or individuals for personal satisfaction or to fulfill needs.

Mercedes

A German global automobile marque known for luxury vehicles, buses, coaches, and trucks.