Definition, Meaning & Synonyms
cash-economy
noun
/kæʃ ˈɛkəˌnɑmi/
Definition
A cash economy is an economic system where transactions are conducted primarily in cash rather than through digital or credit means.
Examples
- In rural areas, a cash-economy is common among local vendors.
- Some businesses thrive in a cash-economy where customers prefer immediate transactions.
- During times of crisis, a cash-economy can become more prominent as people trust physical money over digital assets.
Meaning
In a cash economy, people prefer to use physical money (bills and coins) for their purchases, leading to less reliance on electronic banking and credit cards.
Synonyms
- Cash-based economy
- Physical currency economy
- Monetary economy
