Question

Aims and objectives of modern money

Answer 1

Plastic money or electronic money is the latest form of money. Modern money is representative money. It refers to the hard plastic cards which are used instead of actual bank notes. For instance, cash cards, debit cards, credit cards, pre-paid cards, and store cards.

Aims and objectives of modern money are:

i. To make the monetary transactions more transparent.

ii. To reduce the expenditure on printing notes.

iii. To provide convenience. There is no need to carry big bulks of cash in the wallet. Saves the time spent on repeated visits to the banks.

iv. To obtain a durable form of money. Plastic money is more durable than paper notes.

v. To ensure safety and security. If a card is lost the owner can ask the bank to block the payment. In this way he does not lose any money.

Answer 2

Objectives of evolution of money