Compared to checks,paper currency and coins have the major drawbacks that they
A) are easily stolen.
B) are hard to counterfeit.
C) are not the most liquid assets.
D) must be backed by gold.

Question

Quizplus · Accepted Answer

Paper currency and coins are physical objects that can be easily stolen or lost, whereas checks are often stored digitally or require a signature for authentication. While both cash and checks have risks of fraud, cash is harder to trace and recover once stolen. Additionally, paper currency and coins cannot be easily cancelled or stopped like a check can be.

Compared to Checks,paper Currency and Coins Have the Major Drawbacks