7270722
Description
Flashcards by Dawn S_akura, updated more than 1 year ago
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Created by Dawn S_akura
over 7 years ago
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| Question | Answer |
| acceptable | Key feature of money: to widely be accepted |
| Barter | to exchange goods and services with other goods and services without the use of money |
| Current account | Bank or building society account where people can store their money in the form of electronic balances and withdraw to make payments |
| Denomination | a group of coins and/or bank notes which all share the same face value |
| Divisible | A key feature of money: to be easily divided into different amounts of different value |
| Double Coincidence of Once | A situation in which two people have goods and services to trade and each wants what the other can offer |
| Durable | A key Feature of Money: to be strong enough to be reused in many transactions |
| Face value | the value marked on the face of a coin or note. e.g. 50p, £1 ,£5 |
| fiduciary value | value based on trust in the banking system |
| Homogeneous | to look and feel the same as other coins and notes of the same denomination |
| Inflation | a rise in prices = the purchasing power of money falls |
| Intrinsic value | the value that an item has in itself .e.g. a bag of rice = staple food |
| Legal tender | coins and banknotes that must be accepted if offered in payment of debt |
| a means of exchange | a function of money: to allow people to make payments |
| Money | anything widely accepted as a means of making payments |
| Payment Mechanism | a means of transferring money from one account to another .e.g. debit card, cheque |
| Portable | a feature of money: to be small and light enough to carry around easily |
| purchasing power | the quantity of goods and services that money can buy |
| Rate of exchange | How much an item is worth in term of a different item £1 = 1.5euros ; 1bag of flour=5iron-nails |
| Recognizable | a key feature of money : to be easily identified as genuine money |
| Representational value | the value that an item represents rather than the value the item has in itself; a banknote is just a piece of paper but it represents the value that is imprinted on it |
| Scarce but sufficient | a key feature of money: to be available in sufficient quantities to meet peoples needs but not in such quantities that the value of money falls |
| Store of value | an attribute of money that allows people to store money now and spend it later |
| transaction | buying or selling something |
| unit of account | a function of money: to allow people to compare prices and measure the value of money in a bank account, etc. |
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