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"banknotes" or "checks." The distinction between the two is that a check must be redeemed by the issuing bank with each use … limits the bank's risk-taking behavior, so that banknotes will be preferred over checks. …
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explanation for the continued popularity of checks. An underlying assumption of these studies is that check float operates as a …
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This paper uses a stochastic cost frontier to examine the scale economies, cost efficiencies, and technological change of three payments instruments--check, automated clearinghouse (ACH) transfers, and Fedwire processing--provided by the Federal Reserve over the period 1990-94. We find evidence...
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