Final answer:
The major disadvantages of payable through drafts include rejection of transactions if the account balance is insufficient and possible hefty overdraft fees from banks. These issues highlight the importance of account balance management and the broader concepts of liquidity in banking and currency systems like dollarization.
Step-by-step explanation:
The disadvantages of using a payable through draft, which is a type of check or draft that is drawn on a customer's account and payable through a particular bank, include the risk of overspending. If you spend more than the balance in your account while using a payable through draft, you may face severe repercussions. The transaction could be rejected by the merchant, forcing you to seek alternative payment methods. Additionally, many banks charge an overdraft fee when you spend more than available in your account, which can quickly accumulate and become costly if you carry a negative balance. This is similar to the issues faced with dollarization, where a country adopts a foreign currency, such as U.S. dollars, and the central bank loses the ability to conduct independent monetary policy. Another related concept is the liquidity of savings accounts; they are not as easy to use for immediate transactions compared to checking accounts. For barter systems, the lack of liquidity and difficulty in future contracts, especially with perishable goods like strawberries, poses challenges for sustaining such an economic system.