Federal Reserve Float Law and Legal Definition
Federal Reserve Float is a temporary condition occurring when a Federal Reserve Bank credits a depositary bank's account for an item prior to debiting the account of the drawee bank. As a result, the accounts of both banks may reflect the check amount until the checks are delivered to the drawee bank and charged against the drawee's account. Thus, the Federal Reserve float is an 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.
Legal Definition list
- Federal Reserve District
- Federal Reserve Conspiracy Theory
- Federal Reserve Communications System
- Federal Reserve Board of Governors
- Federal Reserve Bank Operating Circular
- Federal Reserve Float
- Federal Reserve Note
- Federal Reserve Processing Center
- Federal Reserve System
- Federal Retirement Account [Education]
- Federal Retirement Thrift Investment Board
Related Legal Terms
- Accompanying the Federal Government Outside the United States
- Active Guard and Reserve Duty
- Active Guard and Reserve(AGR)
- Active Voters [Federal Elections]
- Actuarial Documents [Federal Crop Insurance Corporation]
- Actuarially Appropriate [Federal Crop Insurance Corporation]
- Administrative Committee of the Federal Register
- Administrative Governor [Federal Reserve System]
- Advisory Councils of Federal Reserve System
- Agent [Federal Elections]
