Why Cash Remains a Popular Means of Payment: Advantages and Disadvantages Explained

cash

The amount of cash dividends a company can pay are limited by the amount of the company’s

Cash is a physical currency in the form of actual banknotes and coins that are used to make payments for goods and services. It is a legal tender that is widely accepted in most countries as a means of exchange. Cash is considered as one of the most immediate and simplest forms of payments as it can be exchanged directly from one party to another. It can be withdrawn from bank accounts through automated teller machines (ATMs) that accept ATM cards. Cash is also used for making purchases in retail stores, paying utility bills, and for making payments for various services such as transportation and food. Cash is widely used for making small transactions as it is generally considered to be more convenient and hassle-free than using other payment methods, such as debit cards or credit cards. However, one of the disadvantages of using cash is that it can be easily lost or stolen, and it also leaves no digital trail, making it difficult to track spending.

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