Economics – Microeconomic decision-makers - Money and banking | e-Consult
Microeconomic decision-makers - Money and banking (1 questions)
Login to see all questions.
Click on a question to view the answer
Money exists in three main forms: coins, banknotes, and electronic money.
Coins and Banknotes: These are physical forms of money.
- Advantages: Widely accepted, convenient for small transactions, tangible.
- Disadvantages: Can be easily counterfeited, bulky to carry large amounts, susceptible to damage or loss.
Electronic Money: This includes credit cards, debit cards, and online payment systems (e.g., PayPal, Apple Pay).
- Advantages: Convenient for large transactions, secure (with encryption), reduces the need for physical handling, facilitates online shopping.
- Disadvantages: Requires access to technology (computers, smartphones), vulnerable to hacking and fraud, reliance on banking systems.
The shift towards electronic money reflects changing consumer habits and technological advancements. While physical money still plays a role, electronic forms are increasingly dominant, particularly in developed economies.