Eli5. What stops a 1000 dollar check made out to cash from being used as a 1000 dollar bill.

696 views

A bit confusing but what I mean by this is say, a guy writes a 1000 dollar check (made out to cash)to buy a quad. The guy receiving the check, instead of cashing it out, uses the original check to then go buy his own quad and so on.

In: Economics

14 Answers

Anonymous 0 Comments

Some businesses do not accept checks as you can cancel a check or lie about actually having the money but most all businesses accept cash.

The guy in your scenario is probably being cautious of not wasting everyone’s time and getting the payment in a more widely accepted form of payment.

You are viewing 1 out of 14 answers, click here to view all answers.