RICHMOND, Va., Oct. 4 /PRNewswire/ -- Though hard to believe in today's
technologically-advanced society, many consumers -- approximately 15 percent
of U.S. households -- do not own a checking account. Why not? How do these
consumers cash their checks or pay their bills?
These questions and more are addressed in the latest issue of Economic
Quarterly, a publication produced by the Federal Reserve Bank of Richmond. In
their article entitled "Means of Payment, the Unbanked, and EFT '99," Fed
economists Edward S. Prescott and Daniel D. Tatar, uncover the reasons that
many low-income individuals forego checking account ownership. Cost is the
primary factor. Rather than paying account fees, many cash their checks for
free at banks and grocery stores and pay bills with cash or low-cost money
orders. Surprisingly, few regularly use costly check-cashing outlets.
The Economic Quarterly is a free publication containing economic analysis
pertinent to Federal Reserve monetary and banking policy. For copies or more
information, contact the Federal Reserve Bank of Richmond's Public Affairs
office at 804-697-8108 or visit their Web site at http://www.rich.frb.org .
Federal Reserve Bank of Richmond news releases can be found at
http://www.rich.frb.org.
SOURCE Federal Reserve Bank of Richmond
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Related links:
http://www.rich.frb.org
CONTACT:
Dan Tatar, 804-697-8463, Ned Prescott,
804-697-8206, or Lisa Oliva, 804-697-8192, all of Federal Reserve
Bank of Richmond
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