What Are The Advantages Of Paper Money?

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.

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