Cash refers to physical money in the form of coins and banknotes that is used for transactions. It is a direct and immediate way to pay for goods and services without the need for electronic processing. Cash is widely accepted in many places, making it a convenient option for everyday purchases.
In addition to its use in transactions, cash can also serve as a store of value. People often keep cash on hand for emergencies or unexpected expenses. However, cash does not earn interest like funds in a bank account, which can limit its growth over time compared to other financial instruments like savings accounts or investments.