Fed Float Occurs Because the Fed

question 7

Multiple Choice

Fed float occurs because the Fed

• A)is no longer involved in the check clearing process
• B)cannot immediately transfer funds to the pay in its wire transfer system
• C)grants check availability to the clearing bank before debiting the pay bank
• D)debits the pay bank for check amounts before granting availability to the clearing bank

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Definitions:

Verifiable Evidence

Information or data that can be substantiated or confirmed through observation, measurement, and documentation.

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A type of business entity that is owned and run by one individual with no legal distinction between the owner and the business.

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