CHAPTER 3

1) Fiat money are money, Such as paper currency that has no value apart from its
use as a money. Its value is derived from the relationship between supply and
demand and the stability of issuing government. Thus, it is backed by public’s
faith in the government or central bank that issued them.

2) Advantages of using checks to pay for goods/services:

 You don’t have to carry a large amount of money with you.
 They are safer, convenient, and easy to use.
 Checks can’t be used by thieves. It is traceable.

3) Since the emergence of e-payments in the Philippines, many people manage to

switch methods or process of their transactions from face to face to online
transfer. I am one of the users of Gcash, a micro payment service that transforms
the mobile phone into a virtual wallet for security, fast, and convenient money
transfer. This service or platform benefits me in many cases. I can use this to buy
prepaid load, pay my bills, and send money. I can also purchase goods online
without the need for any cash. But this e-payment system also has its downsides.
As to the news I heard recently, there are many cases where some of the e-
money from the user’s account has been scammed due to disputed transactions.
Personally, E-payment system helps me pay my liabilities easily and hassle free,
I can receive my allowance also from this system. But sometimes, I’m having
difficulties when it comes to signal or Internet connection. I can’t have an access
online if I do not have a strong internet connection.