Question

The banking industry is developing ways to reduce the cost and discourage the use of ______.

Options:
a) Credit cards
b) Electronic funds transfer
c) Cash transactions
d) Overdraft protection

Answer 1

Banks facilitate transactions and reduce the use of cash through the use of checking and savings accounts, direct withdrawal, checks, and debit cards.

Step-by-step explanation:

Banks play a critical role in the payment system by facilitating the exchange of goods and services for money. They allow individuals and businesses to store money in a checking or savings account and withdraw it as needed using methods such as direct withdrawal, writing a check, or using a debit card. This reduces the need for cash transactions and lowers transaction costs.

For example, if everyone had to use cash for all payments, it would be inconvenient and risky to carry large amounts of cash for shopping or business expenses. Banks provide a safer and more convenient alternative for storing and accessing money.

By reducing the use of cash, banks are actively discouraging cash transactions.