Advantages of Paper Money:
The printing of paper money is easy to print with low cost and saving the time.
The transportation of paper money is easier, safe and cheaper than metallic money e.g. one thousand rupee note can easily be transferred from one place to another place.
Paper money saves gold and silver from useless lockup for other purposes.Paper money can be counted more easily than metallic money. The counting of big amount of coins is a tedious.
Paper money has elastic supply and it can be printed for any purpose at any time. It also helps to Govt. for emergency uses such as war or depression period.
Paper money is easy to recognize now-a –days, even a small child can recognize paper money.
Disadvantages of Paper Money:
The paper money have no stability of value in it, value of each paper money changes with time and with change in monetary conditions of countries. When the Govt. faces financial trouble, then, Govt. print more currency notes. As a result, the prices of the commodities go up and country faces inflation.
The gold and silver coins are accepted by every country, so no problem of international payments. In case of paper money for international payment, we have to convert our currency into foreign currency.Due to increase in money supply, the price and profit will increase. The rich people accumulate wealth and become richer.
It is easier to print paper money than metallic money. Danger is always there from the hidden enemies of the country to print unreal currency notes.Paper money has no durability because it can easily be destroyed or spoiled easily that it has no value at all.
Plastic money, unlike paper money, will not burn easily and can resist higher temperatures than paper money. It also doesn't wear after time as paper does nor does it rip and tear. Paper money also picks up dirt and stains more easily than plastic money. I can't really see any advantages to have paper money, unless it is cheaper to make.
It is light and can easily be carried about. It is durable because it cannot be easily destroyed and can last longer.
The following are the advantages of paper money:
It is a cheaper currency:
Metallic coins require gold and silver as their raw materials while paper money requires paper, which is less costly than the precious metals. Moreover, cost of printing paper is much less than the cost of coming metals. Thus, it is cheaper currency and most suited to poor countries for internal purposes.
It is more convenient to handle:
It can be carried to long distances more easily than metallic money. A person can carry notes of ten thousands of dollars for distance of five miles easily without any inconveniences while he cannot do so if he were to carry ten thousand dollars
It is portable:
It satisfies the condition of portability in a greater degree than metallic money does. It represents more value in smaller bulk so that it is cheaper, easier and safer than metallic money or sending to long distances to make payments.
It is easier to count:
In daily transaction paper money is more convenient than metallic money. In the latter case the process of counting and observing to ascertain their genuine is a tiresome work which is not necessary in the case of paper money.
What are the limitations of paper money
It is light, easy to carry and conceal, easy to make and destroy and it has no value outside of the implied value of the face of the bill and the country that issues the money.
You have no overdrawn fees with paper money... When you spent it its gone. You can see how much you have at a glance, and there's no chance of overspending.
Whenever there is a defecit in budget of government so government can easily print paper money to meet its budget requirements.
It can be recognized easily due to different units;
Paper money is a very useful medium of exchange and a standard of value but if it is miss managed by the issuing authority, it has some very evil effec6ts on the economy. There is less stability of value in paper money as compared to the metallic money. The issuing authority often miscalculated the money requirements in the country and indulged in the over to under issue of the currency. This causes marked and erratic value changes. People lose confidence in the value of money and keep their saving by purchasing gold and silver rather than in the paper currency of the country.
In case of demonetization of paper money as has been done by Pakistan recently, those who could not deposit the demonetized notes due to one reason or the order had to lose all the value. As the demonetized paper notes cease to be legal tender in the country, therefore, they are not worth the paper on which they are printed. The boy's plays them in the open and nobody cares to look at them ever for fun sake.As the intrinsic worth of the paper money is zero, therefore, they can be used only in the country. Outside the country, only stable paper money has the exchange value.
Plastic money are the debit and credit cards. Plus point of plastic money is that you won't have to carry your cash around all the time. You have no fear to be theft. And its easy to use. Its disadvantage is that, some extra money will be deducted for the bank services. Its around 2.5% of the money you spent.
It is light and easily carried. You can conceal it anywhere pretty much and it can be reproduced relatively inexpensively. On the other hand it is easily lost, destroyed and damaged. It can be stolen in great quantities because it is light. It has no value aside from the value assigned by the issuer of the currency.
An advantage is yes that I doesn't burn a easily but it can melt and also breaks easily.
One cannot fold plastic money wherein with paper $ one can. paper money therefore is easier to carry and transport in a small area. paper money is also lighter to carry around.
Through plastic money the pressure on the government to make money reduces
Paper money is the most advance form money because it fullfills all the qualities of good money material .paper money can be classified into representive ,convertible and fiat money.ADVANTAGES paper is more economic aly than the metalic money.because it is easily printed and not costly raw material are required for preparation of paper money.It is easily transferable from one place to another place.the quantity of paper money can be increased or decreased according to demand of country it is easily recognizeable because of some printed characters.it can use at time of crises or war as a emergency need.it is easily counting by SAJJAD UMAR
Well you see the ansewer is very siple it right up your butt and around the corner.