Unit 6: Money And Economy Excercise Solution
(QR Code)
Working with words
A. Match the words in column ‘A’ with their meanings in column ‘B’.
a. prominent
vi. standing out so as to be seen easily, conspicuous
b. vulnerable
iv. exposed to the possibility of being attacked / harmed
c. potentially
viii. with the capacity to develop or happen in the future
d. transaction
i. an instance of buying or selling of something
e. initiatives
ii. the power or opportunity to do something before others do
f. launched
iii. to introduce a new plan or product
g. enduring
ix. lasting over a period of time; durable
h. robust
v. strong and unlikely to break or fall
B. There are different abbreviations used in the text. With the help of the internet, find their full forms.
QR : Quick Response
ISO : International Organization for Standardization
IEC : International Electrotechnical Commission
URLs : Uniform Resource Locators
EMVCo : Europay, Mastercard, and Visa Company
PIN : Personal Identification Number
C. Pronounce the following words and identify the vowel sounds /ʊ/ and /u:/. You can take help from a dictionary.
/ʊ/
put, push, hood, full, bull, book, foot, look, hook, cook, should, soot, stood
/u:/
boom, fool, food, loose, boost, groom, moon, soon, room, soothe,
Comprehension
A. Decide whether these statements are True or False. Write NOT GIVEN if you do not find the information.
a. The system of QR codes was first launched in South Asia. True
b. The standards of payments via the QR codes were approved by EMVCo. True
c. All sorts of businesses are aided by the QR code payments. False
d. There are several models to the QR code payment service. True
e. In countries like Nepal, the QR code paying system is a complete fiasco. False
f. The QR codes payment service is not applicable to small business. False
Answer the following questions.
a.How can one pay with QR codes paying system ?
Ans.: One can pay with a QR codes paying system either by user presents a QR code for scanning by the merchant, or the merchant presents a QR code for scanning by the user.
b.How did Tencent and Alibaba companies utilize the QR code services at the beginning?
Ans.: Tencent and Alibaba companies utilize the QR code services at the beginning by allowing face-to-face ‘friending’ by scanning a QR code displayed on a friend’s mobile phone screen and later QR codes were adopted for use in the Alipay service to facilitate Alibaba Payments.
c.How do the QR code-based payment services launched by Visa and Mastercard mitigate payment problems ?
Ans.: Both Visa and Mastercard are focusing on merchant presented QR codes, whether static or dynamic; where the code is static, the customer is required to enter the transaction amount and the transaction is secured using their card PIN. Hence in this way, QR code-based payment services launched by Visa and Mastercard mitigate payment problems
d.Why do we need a scheme operator to run the QR code based payment system?
Ans.: In any QR code-based payment scheme, a scheme operator is needed, responsible for scheme branding at acceptance points, defining the scheme rules and providing a mechanism for handling disputes and exceptions. Also, the scheme operator is responsible for either operating such a service on behalf of the scheme or securing cost-effective, reliable and enduring access to one for use by the scheme participants. Hence, we need a scheme operator to run the QR code-based payment system.
e.What basic requirements are needed to use the QR codes services?
Ans.: The basic requirements that are needed to use the QR codes services are:
i.Customer’s bank’s app
ii.Smartphone
iii.Personalization of mobile phones with their account
f.How can security concerns related to payment via QR codes be addressed?
Ans.: The security concerns related to payment via QR codes be addressed by the use of merchant IDs, registration and real-time notification of payment.
g.Who should be more careful; customer or the merchant in terms of payment issues? Why?
Ans.: Customers should be more careful in terms of payment issues. It is so because if the customer doesn’t become careful, the hackers might divert the fund and the merchant would not hand over the goods.
h.Do you think the QR code based payment can be a panacea for all sorts of payment problems ? Why ?
Ans.: I don’t think that the QR code-based payment can be a panacea (solution for all problems) for all sorts of payment problems because of the following reasons:
-QR code-based payment service requires an internet connection for a successful transaction. -The system doesn’t work if there is no internet connection available.
-This method of payment is not appropriate for technology-illiterate people.
-Though the QR code system is easy and convenient, there may be the risk of hackers diverting the fund.
-This system of payment isn’t applicable in places where physical money is demanded.
Critical thinking
a.Some business houses, shops and department stores in city areas have started to adopt QR code payment systems in Nepal, too. What should be done to make it more accessible? Discuss.
Ans.: A quick-response (QR) code is a two-dimensional barcode that consists of black squares arranged inside a square grid on a white background. The code is integrated with machine-readable information, which you can access through a QR code scanner or a smartphone camera. Originated from a Japanese company back in the 1990s and once used for the automotive industry, a QR code system is nowadays massively used in various sectors worldwide. Many business houses, shops and department stores in city areas have started to adopt QR code payment systems and Nepal is no exception to the implementation of the QR code system.
The Covid-19 pandemic has immensely boosted the Scan and Pay service through the OR code in Nepal also. People being concerned with their hygiene are supporting the contactless payment system. Evolving digital payment service providers like Fonepay, IMEPay, Khalti, QPay and SmartQR also encourage QR code payment by offering their users Scan and Pay services.
QR code payment can be a vital factor in uplifting Nepal’s digital economy. The government giving more priority to digital payment systems and the central bank promoting this system can be a good start for QR code payment.
Various ideas and programs can be implemented to make it more accessible. Mass awareness campaigns and promotional events can also influence this transition. Infrastructural development like high-speed internet connection and wider user accessibility must be considered. Payment service providers, payment service operators, banks and financial institutions and traders should work together to bring interoperability to their digital payment services. Moreover, in order to lure people, the provider should not charge any transaction fees. Also, the provision of a cashback and discount system should be initiated and prioritize to develop it to a large scale. Good marketing and advertisements are most for any system during its developmental stage.
The ultimate goal should be offering a one-stop solution for the consumers to access all sorts of e-payment services, including QR code payment.
b.The payments landscape is shifting gears from cash to digital mode. Digital payment brings ease and convenience to the consumer. Is it possible to apply such cashless methods in payments in Nepal? Discuss.
Ans: Cashless payment is a method of trading that involves no physical money and payment is done through the usage of credit or debit cards and smartphones (QR code or e-banking). A cashless economy is the direct outcome of transactions made by merchants by using a medium other than paper cash. The digital payment system has both its advantages and disadvantages, which has been discussed below in brief:
Benefits
Convenience is by far the best example one can give regarding the major benefit of the digital payment system. The cashless payment method enables people to purchase items with just a touch of a button or a swipe of the card. It basically speeds up the entire process of payment which is convenient for the purchaser. In addition, it is a much safer method to conduct the transaction of larger sums since one does not require to carry physical cash with them. In addition, the geography of the country is considered an attributing factor that encourages a cashless transaction. The good thing about Nepal’s prospect of the digital payment system is that we have a good smartphone penetration. And the geography of Nepal suits cashless transactions as most of the Nepalese live in rural areas and in these areas, there is less presence of baking and financial institutions since the cost is very high to
establish and manage the banks and in opposition to this, the people’s penetration in banks is low. And, in this case, the digital payment system can act as a boon to the rural people it they know how to use this system of payment.
Drawbacks
One of the main reasons for the popularity of digital wallets is that it offers users (via your smartphones) a quick and easy way to carry out various tasks. However, with the increase in demand for cashless transactions, there has already been and there might be more cases of a digital divide where certain sections of the population are not able to adapt to sch technology either because of their age or because of their socio-economic background. In addition, cyber security has been a key issue in the country’s attempt to adopt a cashless economy. There are cases where you lose your money because of a cyber-attack.
Scenario in Nepal
Although Nepal is in need of infrastructural developments that would, directly and indirectly, support a cashless economy, much progress has been made in a short space of time. Appropriate infrastructures have been developed in the past few years and as the rate of high internet adoption and mobile use increases across Nepal. In addition to this, the payment industry in Nepal has been experiencing unprecedented growth and innovation with support from the regulatory level in recent years. As often reported, stakeholders like banks and payment system operators including card networks and financial-market- infrastructure-providers have played an important role in developing the digital payment space in Nepal.
Nepal adopted the concept of online payment channels relatively late but the growth in the sector has been a steady one over the last few years. We are seeing positive signs because the number of other service providers is increasing and new users, generally people of the new generation, are adopting and accepting technology.
WRITING
Punctuate this paragraph with appropriate punctuation marks.
Ans.: It was a cold freezing day. It had been snowing all day in New York. Mr.Tim cooked and I went outside to play in the snow. We had not seen much snow since we went to skiing in Sweden last year. Mrs Smith was right because she had said that we’d see snow the next day. We had really a wonderful time there, didn’t we?
B.Write a news article about digital payment systems in Nepal.
Ans.:
Digital Payment Systems in Nepal
Digital payment is a transaction that takes place via digital or online modes, with no physical exchange of money involved. This means that both parties, the payer and the payee, use electronic mediums to exchange money.
The world has been moving towards all things digital for some time now. However, the year 2020 put into perspective the dire need to adapt to digital technology as soon as
possible. This adaptation happened almost instantly with the lockdown coming into effect, especially for digital payments in Nepal.
The Covid-19 pandemic has immensely boosted the Scan and Pay service through the QR code in Nepal also. People being concerned with their hygiene are supporting the contactless payment system. Evolving digital payment service providers like Fonepay, IMEPay, Khalti, QPay and SmartQR also encourage QR code payment by offering their users Scan and Pay services.
We currently have various methods of digital payment available in Nepal. Some methods have been in use for more than a decade, some have become recently popular, and others are relatively new.
Banking Cards: Nepalese widely use banking cards, often termed ‘debit cards’ and ‘credit cards’ or ‘prepaid cards’ as an alternative to cash payments. Cards are preferred because of multiple reasons, including, convenience, portability, safety, and security. This is the only mode of digital payment that is popular in online transactions and physical transactions alike.
Mobile Wallets: Mobile Wallets, as the name suggests, is a type of wallet in which you can carry cash but in a digital format. Often customers link their bank accounts or banking cards to the wallet to facilitate secure digital transactions. Another way to use wallets is to add money to the Mobile Wallet and use the saved balance to transfer money.
Internet Banking: Internet Banking, also known as e-banking or online banking, allows the customers of a particular bank to make transactions and conduct other financial activities via the bank’s website. E-banking requires a steady internet connection to make or receive payments and access a bank’s website, which is called ‘Internet Banking’. Today, most Nepalese banks have launched their internet banking services. It has become one of the most popular means of online transactions.
Mobile Banking: Mobile banking refers to the act of conducting transactions and other banking activities via mobile devices, typically through the bank’s mobile app. Today, most banks have their own mobile banking apps that can be used on handheld devices like mobile phones and tablets and sometimes on computers.
Digital payments have several advantages in today’s world. Some of the major advantages of digital payment system has been discussed below in brief:
Instant payment: Digital payments are much faster than the traditional methods of payments such as cash or cheques. Digital payment systems have eliminated the need for going to the banks to make payments. Now, customers do not have to waste their time standing in the long queues at banks. They can easily pay by using an electronic payment app.
Higher payment security: Digital payment systems offer you multiple ways of securing your payments such as tokenization, encryption, SSL (Secure Sockets Layer), etc. Now, your customers do not have to enter their card details every time as they can save their card details or complete their transactions by using an OTP (One Time Password).
Better customer convenience: Digital payments can help to provide a convenient payment experience to customers. It allows customers to purchase goods on credit
by offering them the pay later facility. Instead of sending constant reminders for payment to customers, it can automatically collect money after a specific period.
Low risk of theft: With physical cash, the chances of being are high. Also, you need to take high safety measures in depositing cash into your bank account. But this risk can be decreased if you are using a secure electronic payment system in your business. By using it, you do not have to worry about your payment record. You can easily get an accurate record of all your transactions instantly.
Transparent: Transparency becomes an essential factor when it comes to payments. And when you are using the digital medium for accepting payments, then it becomes essential for you to maintain transparency in your transactions.
Contactless: In the times of the COVID-19 pandemic, people have started finding ways of avoiding human touch to save themselves from getting affected by the coronavirus. Due to this, the need for contactless payments has increased. Though the history of digital payment systems wasn’t of that tremendous success in the past days, the Covid-19 pandemic has brought a paradigm shift in the digital payment system lately. The required basic infrastructures have been developed in the past few years and as the rate of high internet adoption and mobile usage has increased significantly all across Nepal. In addition to this, the payment industry in Nepal has been experiencing unprecedented growth and innovation with support from the regulatory level in recent years. The growth in the sector has been a steady one over the last few years. We are seeing positive signs because the number of other service providers is increasing and new users, generally people of the new generation, are adopting and accepting technology. It shows that the cashless digital payment system will soon take over the physical cash system in the very near future if such a trend of digital payment systems goes on in Nepal.
Grammar
A. Look at the following questions and say what type of questions they are.
a. Do you like this country?
Yes/No Question
b. Where is she from?
Wh Question
c. How many eggs do we need for this cake?
Wh Question
d. Whose children are playing in the yard?
Wh Question
e. Does she like ice cream or sweets?
Choice Question
f. She sent him an invitation, didn’t she?
Tag Question
g. Could you tell me if the doctor is available?
Indirect Question
h. Do you know how tall they are?
Yes/No Question
B. Choose the correct words from the box to complete the sentences.
a. Is your friend a scientist? – No, he’s an artist.
b. Does Naresh live in Kathmandu? – No, he lives in Pokhara.
c. When did you get home? – I got home yesterday.
d. What time do you get up? – I get up at 6:00.
e. Did the children go to the part? – Yes, they went there after school.
f. Are you going to school? – No, I’m going home.
g. Can you speak Chinese? – Just a little.
h. Where did you grow up? – I grew up in Okhaldhunga.
C. Make wh-questions so that the words in bold become the answer.
a. Romeo loves Juliet.
Whom does Romeo love?
b. My mother made a delicious bread yesterday.
What did your mother make yesterday?
c. The music was composed by Narayan Gopal.
Who composed the music?
d. I’m looking for a new book.
What are you looking for?
e. They were talking about the new movie.
What were they talking about?
f. She got the idea from a story.
Where did she get the idea?
g. She always goes to school on foot.
How does she go to school?
h. She sometimes goes to the cinema.
How often does she go to the cinema?
i. They have been waiting for three years.
How long have they been waiting for?
D. Change these indirect questions into direct ones.
a. Could you tell me where the Market Street is?
Where is Market Street?
b. I’m longing to know what time the bank opens.
What time does the bank open?
c. Do you have any idea how he’s managed to get in shape so quickly?
How has he managed to get in shape so quickly?
d. I’d like to know how much this motorcycle costs these days.
How much does this motorcycle cost these days?
e. Did you notice if he had left the car in the park?
Had he left the car in the park?
f. Have you found out if the train has left?
Has the train left?
g. I was wondering if they speak English well.
Could they speak English well?
h. Would you tell us how we can get to the post office from here?
How can we get to the post office from here?
i. Do you remember if I locked the front door?
Did I lock the front door?