The practice of "kiting" as a means of overstating cash is possible only if the client maintains two or more bank accounts.

In the economic way of thinking, money is

A) the root of all evil. B) what makes the world go round. C) a general medium of exchange. D) an institution, which tends to increase transaction costs. E) the source of scarcity in commercial society.

Imperfect asset substitutability exists

A) when it is possible for the expected returns on two assets to be different. B) when the expected returns on two assets are the same. C) only when one asset is foreign and the other is domestic. D) when there is risk in the foreign exchange market. E) when assets are liquid.