Which of the following payment instruments introduced by the banks is known as plastic money ?
Correct answer: B. Credit Cards
- A. Bearer cheques
- B. Credit Cards
- C. Demand Drafts
- D. Gift Cheques
Explanation
Credit cards are called plastic money because they are plastic payment cards that allow purchases on credit. Cheques and demand drafts are paper-based payment instruments.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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