Due to the Costs of Monitoring, Liquidity and Price Risk

question 57

True/False

Due to the costs of monitoring, liquidity and price risk savers often prefer to hold the financial claims issued by FIs rather than those issued by corporations.

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Definitions:

Pay To The Order Of

A phrase written on checks to designate who has the authority to receive the amount specified on the check.

Use Of Checks

The practice of using checks as a method of payment; involves writing, issuing, or receiving checks as a way to transfer money.

14th Century

The period extending from the year 1301 to 1400 in the Gregorian calendar, marked by significant historical events globally.

After World War II

The period following the end of the second global conflict in 1945, characterized by the establishment of the United Nations, the beginning of the Cold War, and significant social and economic changes worldwide.