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
People trust bills because dept of Treasury stands behind those and says “we guarantee that you will be able to exchange this for goods worth $X”. People don’t trust this guy’s chèque the same way because they would need to take steps to validate that indeed they can exchange the chèque for goods worth $X. Yes
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