Slide 4: Forms of Financial Exchange
Explanation of cash, credit cards, electronic transfer, and debit cards.
1. Cash: Cash is the most traditional form of financial exchange, involving physical currency in the form of coins and paper money. It is widely accepted and allows for immediate transactions without the need for additional technology.
2. Credit Cards: Credit cards allow individuals to make purchases on credit, with the promise to repay the amount at a later date. They offer convenience and flexibility, but come with interest rates and fees if the balance is not paid in full each month.
3. Electronic Transfer: Electronic transfer refers to the transfer of funds between bank accounts using electronic means, such as online banking or mobile apps. It is a fast and secure way to make payments and is commonly used for bill payments and bank transfers.
4. Debit Cards: Debit cards are linked to an individual's bank account and allow for immediate transactions by deducting funds directly from the account. They are a convenient alternative to cash and can be used for purchases in stores, online, and at ATMs.