Answer to Question #252181 in Microeconomics for Keerthi

Question

Do we need cashless transactions? What are the modes of cashless transactions

Answer 1

Solution:

Yes, we need cashless transactions. These are payments that are accepted or made without the use of hard cash.

This is because cashless payments eliminate several business risks at once, including employee theft of cash, counterfeit money, and robbery of cash. Furthermore, it lowers the costs of security, cash withdrawal from a bank, transportation, and counting and it is very convenient and reliable.

 

The modes of cashless transactions include the following:

·        Credit and debit cards.

·        Cheques.

·        EFT

·        E-wallets.

·        Mobile money applications.

·        Unstructured Supplementary Service Data (USSD).