Question

Over several hundred years, payments systems used in countries across the world have evolved. For each of the following situations identify the type of payment utilized and at least one reason why economies are moving from checks to electronic payments.

a. Sheila visits a local grocery store to purchase a dozen eggs and a bag of dog food. She uses a €100 note to pay for the goods.

b. Rachael Garcia, a manager at Proxall Pharmacy, used a piece of gold worth $20 to pay for office supplies she needed this month.

c. Edward has just moved to the city to be closer to his office. He was shopping online for some pieces of furniture and he bought a wardrobe and a table lamp. He used a checking account to initiate an automatic bill payment for the items.

Short answer

A. Sheila buys eggs and dog food using the 'Cash' method of payment.

B. Rachael utilizes bartering to buy office supplies and the things she received in exchange for her gold piece.

C. Edward purchased furnishings using plastic money from a debit/credit card while shopping online.

Step-by-step solution

Explanation

Businesses can take payments in a variety of methods, including cash, credit cards, and checks. Furthermore, modern payment techniques such as digital cash transfers, smartphone payments, and other internet payments are becoming increasingly popular.

Explanation

a. Sheila buys eggs and dog food using the 'Cash' method of payment.

b. Rachael utilizes bartering to buy office supplies and the things she received in exchange for her gold piece.

c. Edward purchased furnishings using plastic money from a debit/credit card while shopping online.

Electronic payments are being paid because of the following reasons.

1. Online payments are simple and convenient.

2. Electronic payments have a number of advantages, including tax advantages and ease.

3. Security features are vastly increased, and your accounts are now far more secure than they were previously, such as fingertip sensors or shallow codes.