Q.11 What are the differences between traditional payment and e-payment? (5)
Answer:
Traditional payment and e-payment represent two different methods of completing financial transactions, each with distinct characteristics.
1. Mode of Transaction:
Traditional payment involves physical exchange of money, such as cash, checks, or money orders. Payments are often done in person at stores or banks. E-payment, or electronic payment, uses digital platforms and technology to transfer funds electronically without the need for physical money exchange.
2. Convenience and Speed:
E-payment methods like credit/debit cards, mobile wallets, or online banking are faster and more convenient than traditional payments. Traditional payments require physical presence and may take longer, especially in the case of checks that need clearing.
3. Security:
While traditional payments, especially cash, offer anonymity, they are vulnerable to theft or loss. E-payments employ encryption, authentication, and fraud detection systems, which enhance security but also raise concerns about cybercrime and data breaches.
4. Accessibility:
Traditional payments may be limited by geographic location and banking hours. E-payments can be done anytime and anywhere with internet access, making them more accessible globally.
5. Record Keeping and Tracking:
E-payments automatically generate digital records of transactions, which simplify bookkeeping and audits. Traditional payments may require manual recording, and physical receipts can be lost or damaged.
In summary, traditional payments rely on physical means and in-person interaction, while e-payments utilize electronic systems for faster, secure, and more convenient financial transactions. Each has its advantages depending on context, but e-payments are increasingly preferred due to the growth of digital commerce.
Q.12 Write a short note on impact of emerging technologies on e-commerce. (5)
Answer:
Emerging technologies have significantly transformed the landscape of e-commerce, making it more efficient, personalized, and accessible.
1. Artificial Intelligence (AI) and Machine Learning:
AI helps in personalized marketing by analyzing consumer behavior and preferences. Chatbots powered by AI provide 24/7 customer support, improving user experience. AI also optimizes inventory management and fraud detection.
2. Mobile Technology:
Smartphones and mobile apps have made shopping accessible anywhere and anytime. Mobile payment systems and apps simplify the checkout process, encouraging more purchases.
3. Big Data Analytics:
Big data allows businesses to analyze vast amounts of consumer data to understand market trends and customer needs, enabling targeted marketing and improved decision-making.
4. Blockchain Technology:
Blockchain enhances transparency and security in e-commerce transactions by providing tamper-proof records and enabling secure payments, particularly in supply chain management and digital contracts.
5. Augmented Reality (AR) and Virtual Reality (VR):
These technologies create immersive shopping experiences, such as virtual try-ons of clothes or furniture placement previews, reducing the uncertainty in online purchases.
Overall, emerging technologies make e-commerce more customer-centric, secure, and efficient, driving growth and innovation in the sector.
Q.13 What are the features of a virtual currency? (5)
Answer:
Virtual currency is a type of digital money that exists only in electronic form. It has distinct features that differentiate it from traditional currency.
1. Digital Nature:
Virtual currencies exist solely in digital form and are not issued as physical notes or coins. They are stored and transferred electronically.
2. Decentralization:
Many virtual currencies, like Bitcoin, operate on decentralized networks such as blockchain, which means no central authority (like a government or bank) controls them.
3. Security and Anonymity:
Virtual currencies use cryptographic techniques to secure transactions and control creation. Users can often transact anonymously or pseudonymously, which can enhance privacy.
4. Global Accessibility:
Virtual currencies can be sent and received globally without the need for currency exchange or intermediaries, making them borderless and accessible.
5. Limited Supply:
Many virtual currencies have a capped supply defined by their protocols, which can affect their value over time due to scarcity.
These features make virtual currencies unique, enabling new forms of online transactions but also presenting challenges like regulation and volatility.
Q.14 Explain the significance of E-auction. (5)
Answer:
E-auctions, or electronic auctions, are online platforms where buyers and sellers conduct auctions over the internet. They have gained importance in modern commerce for several reasons.
1. Wider Reach:
E-auctions allow participation from bidders worldwide, increasing competition and potentially better prices for sellers.
2. Transparency:
Online auctions provide real-time visibility of bids to all participants, ensuring a fair and transparent bidding process.
3. Cost Efficiency:
E-auctions reduce the need for physical venues and associated costs, making auctions more affordable and accessible to small and large businesses alike.
4. Speed and Convenience:
E-auctions are faster than traditional auctions and can be conducted anytime from anywhere, saving time and effort for both buyers and sellers.
5. Better Market Price Discovery:
Due to wider participation and competitive bidding, e-auctions often result in more accurate price discovery, reflecting the true market value of goods or services.
In essence, e-auctions leverage technology to create a more efficient, transparent, and global marketplace, benefiting both sellers and buyers.
.webp)
