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Federal reserve float

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federal reserve float
temporary credit to a bank's reserve account caused by the time lag in the collection of checks.

 


FEDERAL RESERVE FLOAT - Float is checkbook money that appears on the books of both the check writer (th...
FEDERAL RESERVE FLOAT (FED FLOAT) - the difference between the availability granted to a clearing bank ...

Federal Reserve Float
Refers to the over-estimation of the country's money supply due to uncleared checks showing as an asset on the books of both the receiving and sending institution.

Federal Reserve float is float present during the Federal Reserve's check collection process.

Federal Reserve float often arises during the Federal Reserve's check collection process.

Federal Reserve Float (Fed Float) is the time interval created when Federal Reserve Banks pay these checks before they are in turn paid by the payer bank.

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issuers; (3) demand deposits at commercial banks (excluding those amounts held by depository institutions, the U.S. government, and foreign banks and official institutions) less cash items in the process of collection and Federal Reserve float; ...

See also: Banks, Federal Reserve Bank, Acquisitions, Banking system, Franchise

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