Even though the use of checks lower transaction costs when compared to the use of paper currency, it is unlikely that the use of paper or metallic currency will disappear entirely. Why?
In small transactions, the gains in safety and convenience of checks are outweighed by the time and cost required to write and process them; in these cases, transaction costs are lower with paper and metallic currency. Therefore, it is unlikely that the use of paper or metallic currency will disappear entirely.
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Suppose that the price level in Country A increase relative to the price level in other countries. In which of the following ways are Country A's imports and exports most likely to change?
a. increase; no change b. increase; decrease c. no change; decrease d. no change; increase e. decrease; increase
How is the international economy qualitatively different in the first part of the twenty-first century from what it was like in the first part of the twentieth century?
What will be an ideal response?