The Time Between When a Payee Sends Payment and the Funds

question 86

Multiple Choice

The time between when a payee sends payment and the funds are credited to the payer's bank account is called the:

• A)collection float
• B)disbursement float
• C)total float
• D)transmittal float

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Definitions:

Insurable Interest

A stake in the value of an entity or thing that provides a legal right or requirement to insure it.

Insurance Contract

A legally binding agreement between an insurance company and the policyholder, specifying the terms for the payment of insurance benefits.

Insuring Property

The act of purchasing insurance to protect against loss or damage to property due to hazards like fire, flood, or theft.

Transferring Risk

Transferring risk involves moving potential financial loss from one party to another, commonly through insurance policies or hedging strategies.