3.1 Money Flashcards by Aryan Bisht

Q

What is money?

A

A medium of exchange of goods and services

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Q

List 4 characteristics of money

A

Portable, Durable, Divisible & Generally Accepted

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Q

List 4 functions of money

A

Medium of exchange
Measure of Value
Store of Value
Deferred Payment

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Q

What are banks?

A

Financial institutions that act as an intermediary between borrowers and savers

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Q

What are commercial banks?

A

banks that have many retail branches located in most cities and towns

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Q

What is a central bank

A

Bank that governs all other commercial banks in a country

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Q

List 3 functions of a commercial bank

A

Accept deposits in the form of savings
Give loans to private individuals
Exchange foreign currencies

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Q

List 3 functions of a commercial bank

A

Lender of last resort
Operates the monetary policy
Issues notes/coins

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