Cheques deposited in bank may not be available for immediate use due to:

Payment Float
Receipt Float
Net Float
Playing the Float

The correct answer is: A. Payment Float

Payment float is the time between when a check is deposited and when the funds are available for withdrawal. This can be due to a number of factors, including the time it takes for the check to clear the bank, the time it takes for the bank to process the deposit, and the time it takes for the funds to be available in your account.

Receipt float is the time between when a check is written and when the funds are deducted from the account. This can be due to a number of factors, including the time it takes for the check to be mailed, the time it takes for the check to clear the bank, and the time it takes for the bank to process the withdrawal.

Net float is the difference between payment float and receipt float. This is the amount of time that funds are available for use between when a check is deposited and when a check is written.

Playing the float is a practice that involves taking advantage of the time between when a check is deposited and when the funds are available for withdrawal. This can be done by writing checks before the funds are available, or by withdrawing cash before the funds are available. Playing the float can be risky, as it can lead to overdraft fees if the funds are not available when they are needed.

I hope this helps!

Exit mobile version