federal reserve float

Related Overviews


More Like This

Show all results sharing this subject:

  • Financial Institutions and Services


Show Summary Details

Quick Reference

Fictitious money created when a Federal Reserve Bank credits an account in another bank with the value of a cheque before it has collected payment from the paying bank. A float is not created when the transaction involves a paying bank in the same city as the Federal Reserve Bank. Processing and transport delays cause the creation of most floats.

Subjects: Financial Institutions and Services.

Reference entries

Users without a subscription are not able to see the full content. Please, subscribe or login to access all content.