Question

PAYMENTS IN A NEW DEMOCRACY A country in Africa has recently undergone a revolution and is now governed by a popular democracy. In the past, all economic activity was undertaken by the autocratic leadership and their facilities, which no longer exist. The population of the country only survived in the past via various forms of barter, but now have to understand and establish modern functioning payment facilities. Start the process of understanding by describing some of the basics of payment in a letter to the revolutionary council.

Define what a payments management body is and how it achieves its purpose via payment clearing houses;(1 typed page)

Answer 1

Payment is the process of a transaction of goods and services which exist in a market. It can be done by various methods like an exchange of one good or service for another like barter system that is an old system payment and no longer exists in the modern economy. After a revolutionary change barter system removed from the economy. Nowadays another developed payment system exists. Money is the most common method of payment in the present era. The most significant activity of economy that is trading could be successfully done by payment method. it is totally dependent on the receiver that which method of payment he or she would want. Due to digitization, this common method has been changed into online payment which has been done through credit cards, debit cards, online banking etc.

This several kinds of payment system should be done through the strong management system which is treated like a central payment management system. This payment system provides various services related to payment to various agencies. Payment management body achieves its purpose via payment clearing houses which stands between two parties to reduce the level of risk in business. Payment management body somewhere successfully achieved the safe transactions methods which are generally in favor of consumers and producers as well.