What Does the Term "Float" in Banking Reference

question 46

Multiple Choice

What does the term "float" in banking reference?

• A) The time it takes for a check to go through the traditional check-clearing process and be paid.
• B) The time it takes for a bank authority to report a bad check to the issuing bank.
• C) The time it takes to convert a nonnegotiable instrument to a negotiable instrument.
• D) The time it takes to convert a time instrument to a demand instrument.
• E) The time it takes to convert a demand instrument to a time instrument.

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Definitions:

Pension Plans

Retirement plans that require an employer to contribute to a pool of funds set aside for an employee's future benefit.

Employee Services

Various support services provided by employers to enhance the well-being and productivity of their workforce, such as health care, counseling, and transportation.

Flexible Versus Fixed Benefits

A comparison between two types of benefits; flexible benefits can be tailored to individual needs, while fixed benefits are standardized and not changeable.

Health Care Spending Account

A tax-advantaged account that employees can use to pay for eligible health care expenses not covered by insurance.