#economics #money
The lending bank doesn't incur the liability until the cheque is actually paid in, whether that is minutes or days later doesn't really matter.
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Mark Wadsworth: Banking made easystantaneously. i. The lending bank hands over a bit of paper with a number written on it (the cheque, which the buyer gives to the vendor).ii. If the vendor loses the cheque or forgets to ever bank it, the lending bank gets off scot free.iii. <span>The lending bank doesn't incur the liability until the cheque is actually paid in, whether that is minutes or days later doesn't really matter.iv. Sure, the vendor might pay it in at a different bank, but the lending bank will also accept cheques issued by other banks, so it all cancels out (and the rest is just inter-bank lend Summary
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