3.1 Cash

Question 1

advantages of using cash for low-value transaction

Answer 1

-convenient for the payer
-readily accepted
-instant
-low risk at low values
-help budget

Question 2

Budgeting

Answer 2

• more aware of where the money is going
• can see what you are able to afford by checking how mush cash is left

Question 3

Disadvantages of cash

Answer 3

◆ The transaction is not made face-to-face with the seller
◆ The transaction must be made on the same or similar dates every month
◆ Paying by cash is less convenient than
other methods
◆ Carrying large amounts of cash can be risky

◆ Some sellers prefer other payment methods

Question 4

Why sellers may not want to be paid in cash

Answer 4

• the seller has the responsibility of looking after the cash until it can be deposited in their bank account
• have to pay wages to employees to process the cash
• Sellers may also be suspicious of customers who wish to pay for high-value items in cash