2.8 - the role of money and financial markets Flashcards
1
Q
money
A
anything that is accepted as a means of paying for goods and services
2
Q
debit card
A
takes the money straight from your current account to the seller
3
Q
credit card
A
enables you to buy goods whether or not you have the money in your account
takes the money from the bank that you then pay back with interest
4
Q
medium of exchange
A
money is accepted as a means of buying and selling, so it facilitates the exchange of goods and services
5
Q
financial sector
A
comprised of financial organisations, their products and the flow of capital from them
6
Q
insurance company
A
financial company that guarantees compensation for a loss
7
Q
interest rates
A
price of money
cost of borrowing and reward for saving
8
Q
loanable funds
A
peoples savings used for someone else’s loans
