Question

The "Check 21 " Act, which allows banks to transfer check images instead of paper checks, speeds up check processing. What is the likely effect on: a. Float (duplicate money because a check has been deposited but not yet deducted from the payer's account). b. Variability of float. c. Defensive Fed actions. LO4

    The "Check 21 " Act, which allows banks to transfer check images instead of paper checks, speeds up check processing. What is the likely effect on:
a. Float (duplicate money because a check has been deposited but not yet deducted from the payer's account).
b. Variability of float.
c. Defensive Fed actions. LO4

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Macroeconomics

David Colander 8th Edition

Chapter 14, Problem 23

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Step 1

During this period, the money effectively exists in two places simultaneously: in the payer's account and in the payee's account. This duplicate presence of money is what is referred to as "float." Show more…

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The "Check 21 " Act, which allows banks to transfer check images instead of paper checks, speeds up check processing. What is the likely effect on: a. Float (duplicate money because a check has been deposited but not yet deducted from the payer's account). b. Variability of float. c. Defensive Fed actions. LO4

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