Compared to an electronic payments system, a payments system based on checks has the major drawback that

A) checks are less costly to process.
B) checks take longer to process, meaning that it may take several days before the depositor can get her cash.
C) fraud may be more difficult to commit when paper receipts are eliminated.
D) legal liability is more clearly defined.

B

Economics

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What are the three basic economic decisions each household must make?

What will be an ideal response?

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"Since checking accounts now pay interest they should not be included in the money supply." Given that checks are the major medium of exchange, this statement is false because

A) checking accounts are primarily used for savings in the current year. B) the interest rate on checking accounts is lower than on other accounts. C) the demand for real balances is negatively related to interest rates. D) money is money.

Economics