Name an example of plastic money.

• Credit cards are an example of plastic money. They are issued by financial institutions like banks.
• Plastic money is a convenient substitute for cash or the standard currency. Different forms of plastic money are Credit cards, Debit cards, ATM cards, Prepaid Cash cards, Forex cards, etc.
• Plastic money is beneficial for customers for both physical and virtual purchases of goods and services.
• Plastic money was invented by an Australian scientist, David Solomon.
• The usage of plastic money has a lot of advantages:
• Facilitates paperless transactions, assured security in transactions, easy and convenient to carry, availability of multiple payment options, more flexibility compared to traditional modes of transactions,rewards and benefits, and control over spending.
• However, there is a risk factor involved in losing the card and further complications.It cannot be used in small outlets and for daily needs.

Further Reading:

• Money Supply
• Monetary System

Find more related IAS Questions in the linked article.

Related Links: