Why do we use paper money instead of coins?
Show answer & explanation
Answer: Paper is lighter for large amounts
Paper is lighter for large amounts ✓ — Correct! Paper money (actually cotton-linen blend) is much lighter and cheaper to produce for large denominations. Carrying $1000 in coins would weigh over 10 kg, while $1000 in paper bills weighs just 10 grams. For high values, paper is far more practical than metal.
Coins last longer than paper — Wrong. While coins do last 25+ years versus paper money's 5-7 years, this durability works against coins for large denominations. The metal cost for high-value coins would be prohibitive, and their weight would make daily transactions extremely impractical.
Paper money can't be counterfeited — Wrong. Modern paper money has many security features (watermarks, security threads, color-shifting ink), but coins can also be counterfeited. The main reason for paper money is practical convenience and cost efficiency, not security advantages.