Q. 15.0( 1 Vote )
Plastic money is
Advantages of plastic money:
1. Easy to carry – One should always carry some cash in hand because there may be some urgent need. But carrying too much cash is also not good because of the bulk as well as the fear of loss or theft. To avoid this problem, plastic cash comes in use.
2. Universally acceptable – Plastic money is accepted worldwide which makes it very convenient to use anywhere around the world without worrying about getting the currency converted.
3. Purchase can be made on credit basis – Credit card is a form of plastic money that facilitates buying of things on cash when one is short of cash. To avail this advantage the only one way is to use plastic money.
4. Keeps a record of transactions – Plastic money is related to banks and thus there is a record of each and every transaction automatically. One can track all transactions this way.
Disadvantages of plastic money:
1. Can overspend – Carrying limited amount of cash prevents one from overspending whereas if one is carrying cards then he/she may indulge in unnecessary using knowing that the payment has to be made later.
2. Limit in order to swipe card – All plastic money has minimum purchase requirements which need to be followed in order to use it.
3. Involves service charges – Every transaction using cards involve a certain amount of charges levied by the banks. While using these cash, these additional charges can be avoided.
4. Interest for late payment – Since plastic money facilitates credit facilities it also imposes interest payment if the money is not paid within the stipulated period. In case of cash no such issues arise.
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