Answer to Question #298501 in Finance for Ayzaa

Question

Why were people in United States in the ninteenth century sometimes willing to he paid by check rather than with gold, even though they knew that there was a possibility that they check might bounce?

Answer 1

This was because a check was easier to carry than gold and people would frequently rather be paid by check even if there was a possibility that the check might bounce. In short, they preferred what had lower transactions costs in handling and these were checks.