1. PART A
Answer:
Currently the word "Digital Cash" is used to describe many different kinds of
products, from micropayment to smart cards to actual digitized value stored in computers.
Each system is different, has different requirements and capabilities, and potentially different
problems. To state simply, Digital Cash known as e-currency, e-money, electronic cash,
electronic currency, digital money, digital currency, cyber currency refers to a system in
which a person can securely pay for goods or services by transmitting a number from one
computer to another electronically without necessarily involving a bank to mediate the
transaction. Like the serial numbers on real dollar bills, the digital cash numbers are unique.
Each one is issued by a bank and represents a specified sum of real money. One of the key
features of digital cash is that, like real cash, it is anonymous and reusable. That is, when a
digital cash amount is sent from a buyer to a vendor, there is no way to obtain information
about the buyer. This is one of the key differences between digital cash and credit card
systems. Another key difference is that a digital cash certificate can be reused.
Digital cash transactions are expected to become commonplace by the year 2000.
However, there a number of competing protocols and it is unclear which ones will become
dominant. Most digital cash systems start with a participating bank that issues cash numbers
or other unique identifiers that carry a given value, such as five dollars. To obtain such a
certificate, you must have an account at the bank; when you purchase digital cash certificates,
the money is withdrawn from your account. You transfer the certificate to the vendor to pay
for a product or service, and the vendor deposits the cash number in any participating bank or
retransmits it to another vendor. For large purchases, the vendor can check the validity of a
cash number by contacting the issuing bank.
This experiment is failed because digital cash card cannot be exchanged for cash. It
only can be exchanged for goods and services. Digital cash card describes any value storage
and exchange system created by private entity. It does not use paper documents or coins and
can serve as substitute for government-issued physical currency. Furthermore, it has no
standard among all electronic cash issues. Digital cash card is not universally accepted. That
is why it failed.

2. PART B
Complete the following statements.
1. A(n) _ Charge card _, offered by companies such as American Express, carries no
spending limit, and the entire amount charged to the card is due at the end of the billing
period.
2. A(n) __Merchant bank (acquiring bank)__ is a bank that does business with sellers
(both Internet and non-Internet) that want to accept payment cards.
3. Electronic cash(e-cash, digital cash)___ is a general term that describes any value
storage and exchange system created by a private (nongovernmental) entity that does not
use paper documents or coins and that can serve as a substitute for government-issued
physical currency.
4. The term _double spending refers to the spending of a particular piece of electronic
cash twice by submitting the same electronic currency to two different vendors.
5. A(n) __server-side electronic wallet__ stores a customer’s information on a remote
server belonging to a particular merchant or wallet publisher.
6. A(n) ___stored-value card_ is an elaborate smart card with a microchip or a plastic
card with a magnetic strip that records the currency balance.
7. A(n) _smart card is a stored-value plastic card with an embedded microchip that can
store information.
8. When the e-mails used in a phishing expedition are carefully designed to target a
particular person or organization, the exploit is called _spear phishing_.