Saturday, May 16, 2009

Do modern-day checks satisfy the desired properties of money?

obviously checks are easy to carry around (portable), can around (portable), can be written in various amounts (divisible), and are reasonably durable. However, checks are not always of recognizable value. if a stranger offers you a $30,000 check for your car, chances are you will not hand over the keys. the problem is that you do not recognize the true value of the check-it may bounce, in which case you are out one car. Recent advances in electronic check verification,however, are making it easier for some check recipients (primarily businesses) to verify checks quickly.

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