Solution Matrix • Cost-Benefit-Analysis
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Float

Funds tied up in checks or other noncash transfers that have been issued, but not processed or collected. In banking, a float is the time between the deposit of a check and actual payment by the check writer’s bank. Floats operate to the check writer’s advantage (who is credited with having issued payment) and against the recipient depositor, who may not be able to use the funds until the float clears.

 

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