Answered: What is float in the banking system?…

What is float in the banking system? A. An illegal activity that is a form of bank fraud B. Temporary net increase in reserves due to differences in the timing of debits and credits C.

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Chapter2: Ethics & Governance Scandals

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Problem 6.7EC

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Question

What is float in the banking system?

An illegal activity that is a form of bank fraud

Temporary net increase in reserves due to differences in the timing of debits and credits

Tendency for interest rates to rise over time

The term used to describe sales of Treasury bonds by the Fed

Expert Solution

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Float in banking system means that money is counted due to time difference between deposit made and entry in cash system of banks.

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