Final answer:
Merchant preferences for payment tools can vary, but many tend to favor credit cards or mobile wallets over cash and checks in the modern marketplace due to the speed, security, and convenience they provide. The preference for electronic payments has been amplified by shifts such as the COVID-19 pandemic's impact on payment behaviors.
Step-by-step explanation:
The question of which payment tool merchants prefer can vary widely, as merchant preferences can depend on various factors such as cost of processing, convenience, security, and customer preference. Historically, some merchants preferred cash because it didn't involve any processing fees and was instantly available for use. However, the trend has been moving away from cash and checks towards electronic payments. During the COVID-19 pandemic, customer and merchant preferences shifted even more towards contactless payments, such as credit cards, debit cards, and mobile wallets, often due to health concerns and the convenience of these payment methods. While checks are less preferred due to the risk of fraud and slower processing times, credit cards are often favored for their wide acceptance, built-in security features, and the ability for merchants to receive payments quickly, even though they do incur processing fees.
To directly address the student's question: While there is no one-size-fits-all answer, in the current marketplace, many merchants tend to prefer credit cards or mobile wallets over cash and checks. This preference is because electronic payments are faster, more secure, and often more convenient for record-keeping and financial management.
It's important to note that having more credit cards or debit cards does not change the quantity of money in the economy, any more than printing more checks increases the amount of money in your checking account. In the larger economic perspective, these payment methods are just tools for transacting money that already exists within the economy, not means of creating new money.