Final answer:
The Expedited Funds Availability Act outlines the time frames for banks to make deposited funds available, typically requiring the first $200 on the next business day and the remainder by the second business day, with exceptions for certain scenarios.
Step-by-step explanation:
The availability requirements of deposited items according to the Expedited Funds Availability Act are set to ensure that banks provide customers with timely access to funds from their bank deposits. This act defines the time frames within which banks must make deposited funds available to customers, therefore promoting efficiency in the banking system and public confidence in the financial system. In general, the act requires that the first $200 of a deposit be available on the next business day following the banking day that a deposit is made, and the remaining funds to be available on the second business day after the deposit. However, longer hold times can apply for larger deposits, new accounts, and under other specific circumstances deemed exceptional.