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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Which of these variables remains exogenous throughout Chapter 3?
A) the interest rate B) investment C) price level D) all of the above
Which of the following is true about income inequality?
A. Inequality tends to be greatest in the poorest countries. B. Inequality tends to diminish as the population increases. C. Inequality is not an issue for developed countries. D. Inequality tends to get worse as a country develops.
If the U.S. price level rises relative to the Japanese price level, purchasing power parity predicts a long run increase in the value of the dollar relative to the yen.
Answer the following statement true (T) or false (F)
Real per capita GDP:
A. grows at approximately the same rate for all countries. B. was much more equal across nations in 1820 than it is today. C. has been about 20 times higher in the richer nations than the poorer nations for about 2000 years. D. grows much faster in "leader countries" than in "follower countries."