Question

We use many electronic forms of money: debit cards, online bill payments, electronic bank drafts, and wire transfers. These forms of money make an important point - the essence of money is that it is a form of ______.

A. cash
B. currency
C. information
D. growth trap

Answer 1

Plastic money, such as debit cards, credit cards, and smart cards, are a form of information rather than physical cash or currency. They serve as electronic forms of money by allowing transfers of funds and providing a means to make purchases. These forms of money store and convey information related to monetary value.

Step-by-step explanation:

Plastic money, such as debit cards, credit cards, and smart cards, fit into the picture of electronic forms of money. These forms of money are not considered physical cash or currency but rather a form of information. For example, a debit card is an instruction to transfer money from your bank account to the seller, while a credit card is a short-term loan from the credit card company. Smart cards store a certain value of money on the card and can be used to make purchases. Therefore, the essence of money in these forms is that it is a form of information.