What Is Float

question 10

Multiple Choice

What is float?

• A)Overnight payments via CHIPS or Fedwire.
• B)Encoding,endorsing,microfilming,and handling customers' checks.
• C)Time it takes a check to clear at a bank.
• D)Management of multiple currency and security portfolios for trading and investment purposes.

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Definitions:

Transfer of Consideration

The process by which payment is made, or value is exchanged, between parties in a transaction, often related to the acquisition of assets or services.

Cost Method

An accounting method used for investments, where the investment is recorded at its acquisition cost, without recognizing the investor's share of the investee's profit or loss until dividends are received.

Voting Shares

Shares that give the shareholder the right to vote on company matters, such as electing the board of directors, at shareholder meetings.

Net Income

The total earnings of a company after subtracting all expenses, including taxes and operational costs, indicating its profitability over a specific period.