Asked by Anthony Jones on Apr 24, 2024
Verified
The term that stands for the time it takes a check to go through the traditional check-clearing process and be paid is known as ________.
A) check clearing
B) bank time
C) tender time
D) demand time
E) float
Check Clearing
The process by which banks exchange checks and settle funds, ensuring that the amount specified on the check is transferred from the payer's account to the payee's account.
Bank Time
A policy where employees can accumulate hours of work time to use at a later date, often for leave purposes.
Float
The time difference between when a bank transaction is initiated and when it is completed, allowing funds to appear available in the account before they actually are.
- Understand the legal ramifications of using negotiable instruments during business transactions.
Verified Answer
CY
Candace Young7 days ago
Final Answer :
E
Explanation :
The term "float" refers to the time period between when a check is written and when it is actually cleared and the funds are deducted from the payer's account. This process involves the check's journey through the banking system until it is paid by the payer's bank.
Learning Objectives
- Understand the legal ramifications of using negotiable instruments during business transactions.