← IGCSE Computer Science Paper 1

Physical money: coins and notes

Cash in the form of coins and notes that you can hold in your hand and hand over to pay for things, unlike digital currency, which exists only electronically.

Part of: IGCSE Computer Science 0478 — 5.2 Digital Currency — Module 2

Understanding Physical money: coins and notes in IGCSE Computer Science Paper 1

What it does: Paying with physical money means giving the actual coins and notes to the shopkeeper, who then holds them. If cash is dropped or taken, the money is gone because it is a physical item, so the amount you hold goes down. Physical money has a physical form. Digital currency is the type that exists only as data. Cash can be lost or stolen. Unlike a digital account, there is usually no record that allows it to be recovered. Cash needs to be manufactured and moved to banks and shops. Digital currency does not need to be physically made or moved.

Common mistakes: The change from a cash payment is the cash handed over minus the price, so it should be change ← 5.00 - price. The broken line gives a negative amount. When you hand over cash in a shop, you have less of it. It should be wallet ← wallet - spend, not +.

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This module's key terms are also in a printable crossword (Modules 490–499) and word search (Modules 490–509).

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Learning
Duo
Which of these is an example of physical money?
A balance shown only in a banking appA coin or banknote you can hold in your hand
Matches
physical money = a number stored only on a computer
↓
This describes digital currency. Physical money is real coins and notes you can hold in your hand.
Applying
Meanings
Term
physical money
Meaning
Cash in the form of coins and notes that you can hold in your hand and hand over to pay for things, unlike digital currency, which exists only electronically.
Practice
physical money = coins + notes
Testing
Gaps
IF cash price THEN
Check Answer
Spots
1price ← 3.50
2change ← price - 5.00

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Quick Questions

1. Which of these is an example of physical money?
A. A coin or banknote you can hold in your hand ✓
B. A balance shown only in a banking app
Physical money is cash in the form of coins and notes that you can hold. A balance in an app exists only electronically.
2. Which statement about physical money is correct?
A. It exists only as data on a computer
B. It exists as coins and banknotes you can touch ✓
Physical money has a physical form. Digital currency is the type that exists only as data.
3. A customer pays in a shop using cash. What happens?
A. They hand over coins or notes to the cashier ✓
B. A digital record is added to a blockchain ledger
Paying with physical money means handing over the actual coins or notes. Blockchain records are used for digital currency.
4. A student drops their wallet on the bus and cannot find it. What is the risk with physical money?
A. The cash is lost and usually cannot be recovered ✓
B. The cash is automatically restored from a backup
Cash can be lost or stolen. Unlike a digital account, there is usually no record that allows it to be recovered.
5. Which of these is a coin or banknote?
A. Wallet: a digital store of currency
B. Banknote: a piece of paper or plastic money ✓
Coins and banknotes are the two forms of physical money. A digital wallet is a different thing and holds digital currency.

Match the Pairs

physical money → Cash in the form of coins and notes that you can hold in your hand and hand over to pay for things
coins and banknotes → The two physical forms of cash: metal coins and paper or plastic notes
Physical money is handed over in person to pay in a shop → pay = hand_over(cash)
Physical money can be lost or stolen because it is a real object you carry → wallet = wallet - lost_cash
physical money = a number stored only on a computer → This describes digital currency. Physical money is real coins and notes you can hold in your hand.
cash needs no making or moving → Wrong: physical money has to be made (coins minted, notes printed) and moved, for example by delivery to banks and shops.

Key Term

physical money
Cash in the form of coins and notes that you can hold in your hand and hand over to pay for things, unlike digital currency, which exists only electronically.

Fill in the Blanks

1. price ← 4 IF cash >= price THEN OUTPUT "Paid"
Hint: Type the comparison operator that checks the customer has enough cash to cover the price (at least as much).
2. cash ← 20 price ← 6 cash ← cash - price
Hint: Type the arithmetic operator that shows cash leaving your hand when you hand it over in a shop.
3. cash ← 20 stolen ← TRUE IF stolen = TRUE THEN cash ← 0
Hint: Type the keyword that starts a selection statement, so the cash is lost only when it has been stolen.
4. coins ← 5 notes ← 2 total ← coins + notes
Hint: Type the arithmetic operator that combines the coins and the notes into one total of physical money.
5. paid ← TRUE IF paid = TRUE THEN OUTPUT "Cash handed over"
Hint: Type the keyword that follows the condition in a selection statement.

Spot the Error

Question 1
A price ← 3.50
B change ← price - 5.00
C OUTPUT change
Line B — The change from a cash payment is the cash handed over minus the price, so it should be change ← 5.00 - price. The broken line gives a negative amount.
Question 2
A wallet ← 20
B spend ← 8
C OUTPUT "Paying cash"
D wallet ← wallet + spend
E OUTPUT wallet
Line D — When you hand over cash in a shop, you have less of it. It should be wallet ← wallet - spend, not +.
Question 3
A cash ← 30
B lost ← TRUE
C IF lost = TRUE
D cash ← 0
E ENDIF
Line C — An IF statement needs the keyword THEN after the condition. It should be IF lost = TRUE THEN. Lost cash is gone, so cash becomes 0.
Question 4
A price ← 4.00
B cash_given ← 10.00
C change ← cash_given - price
D OUTPUT "Change: ", price
Line D — The line should output the change the shop gives back. It outputs price instead of the variable change.
Question 5
A total ← 0
B FOR i ← 1 UNTIL 3
C total ← total + 2
D NEXT i
E OUTPUT total
Line B — A count-controlled FOR loop uses TO for its end value. It should be FOR i ← 1 TO 3, which adds up three 2p coins.

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