Given the prevalence of electronic payment mechanisms like credit cards and debit cards and the safety of checks, why is the amount of currency in the hands of the public increasing?
What will be an ideal response?
There are a couple of reasons, for one, a lot of illegal transactions are carried out using currency, however, if this were the only reason currency would probably be banned. Most people have transactions they carry out where they prefer to be anonymous. While checks and electronic payments are relatively safe, they do transfer a lot of information to the receiver, account numbers, names, addresses, etc.
You might also like to view...
According to the U.S. Secret Service, approximately $2.6 billion of U.S. paper currency in circulation is counterfeit
Undetected counterfeit currency which is spent and circulated in the marketplace is an example of the counterfeit currency being used as a A) medium of exchange. B) store of value. C) commodity money. D) bank reserve.
Which of the following is more likely to be the price elasticity of demand for the snake bite treatment antivenom?
A. Highly inelastic B. Unit elastic C. Elastic D. Perfectly elastic
The international trade agreement that was executed in the 1940s was
a. the NAFTA b. the U.S.–Mexico Border 2012 Agreement c. the London Convention d. the 1996 Protocol e. the GATT
Which of the following is NOT a non-price determinant of demand?
A) the price of the good or service B) tastes and preferences C) expectations of future prices D) prices of related goods and services