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Forms of Money in Modern Society - Coggle Diagram
Forms of Money in Modern Society
cash
definition: money in coins or notes, as distinct from cheques, money orders, or credit.
pros: no security breaches, no overspending, less marketing,
cons: more to carry around, lost easily, no way of tracking
credit card
pros: no foreign transaction fees, Free credit score information, Protection against credit card fraud, Earn rewards such as cash back or miles points.
definition: a small plastic card issued by a bank, building society, etc., allowing the holder to purchase goods or services on credit.
cons: easy to loose, Interest charges, late fees, teptation to overspend
Cheque
definition: an order to a bank to pay a stated sum from the drawer's account, written on a specially printed form.
cons: not suitable for small amounts, could get scammed, not legal tender and other creditors may refuse to accept them.
pros: more convenient than carrying around cash, drawn up anytime, are safer if crossed.
direct debit
definition: an arrangement made with a bank that allows a third party to transfer money from a person's account on agreed dates, typically in order to pay bills.
pros: No more late payments, Direct Debit reduces your admin time, It reduces payment failures.
cons: time that it takes to get paid for the first time.
lay-by
definition: a system of paying a deposit to secure an article for later purchase.
cons: cancellation charges. Lay-by is always at the original price for products that might later go on sale.
pros: seller may not charge interest on the price of the goods.
electronic funds transfer
pros: Speed of transactions, record keeping, accuracy
cons: It creates purchasing opportunities around the clock, customers need to have the funds available immediately, won't receive a copy of the canceled check.
definitions: the electronic transfer of money over an online network