If the Average Daily Float Is $2,500, What Is the Net

question 16

Multiple Choice

If the average daily float is $2,500, what is the net present value per day?

• A)$-0.55
• B)$-5.55
• C)$-252.66
• D)$-197.00
• E)None of the above.

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Definitions:

Restrictive Endorsement

A limitation placed on the use of a check that specifies the conditions under which the check can be endorsed or cashed.

Negotiable

Refers to something that can be transferred from one party to another, commonly used in the context of financial instruments that can be exchanged or sold.

Holder in Due Course

A legal term that refers to a person who has acquired a negotiable instrument in good faith and for value, thereby having certain rights to payment.

Transferred

The act of moving or shifting ownership, rights, or possession from one entity to another.