Charlies' Writes 135 Checks a Day for an Average Amount

question 71

Multiple Choice

Charlies' writes 135 checks a day for an average amount of $480 each. These checks generally clear the bank in 3 days. In addition, the firm generally receives an average of $159,000 a day in checks that are deposited immediately. Deposited funds are available in 1.5 days. What is the firm's net float?

• A) Net disbursement float of $94,200
• B) Net disbursement float of $44,100
• C) Net disbursement float of $34,750
• D) Net collection float of $44,100
• E) Net collection float of $94,200

---

Definitions:

Electoral Institutions

Organizations and systems that organize, oversee, and regulate the process of electing representatives in a democracy.

Representative Institutions

Bodies or organizations that are elected or appointed to act on behalf of a larger group of people, such as legislatures or councils.

Enfranchise

To enfranchise is to grant voting rights to an individual or group, thereby providing them the power to participate in choosing their government representatives.

Disenfranchise

The act of depriving someone of the right to vote or other rights of citizenship.