Barter, Money, E.F.T Flashcards
What is Barter?
Barter is the exchange of goods and services without the involvement of money.
Advantages of Barter.
No involvement of money
Increases availability of goods
Increased productivity and quality of life .
Disadvantages of barter
- A lack of equitable exchange rates
- Wealthy cannot be stoted overtime
- Dividing goods fairly
What is token money?
Token money is items used as money (eg. Gold, Silver, Cattle, Sugar, Salt & Shells)
Who were the goldsmiths?
The Goldsmiths became the bankers and they provided the receipt for gold snd silver
Legal Tender
All the lawful bill that is issued by a country’s central bank, that is accepted as money .
What is money?
Money is any acceptable medium of exchange.
Characteristics of Money
S - Scarse
H - Homogeneous
A - Acceptable
P - Portable
E - Exchangeable
D - Durable
D - Divisible
Functions of money
- A medium of exchanges( allow easy and quick transaction)
- A store of value( money can be saved for any amount of time)
A measure of value (prices can be put on things relative to its value)
What is E.F.T?
(Electronic Funds Transfer) the transfer of money online
What is the Debit/ Plastic Card?
A debit card allows the purchaser to receive immediate payment from the purchaser. It is also used to withdraw money from the ATM .
What is Credit Cards?
A physical payment card that allows you to get credit from a financial institution.
What is a standing order?
a convenient way to make a regular payment of the same amount on a specific day.
What is a direct debit?
The updated version of a standing order. It allows variation in the payment amount. This transaction is done online with the permission from the account holder
What is a direct deposit?
The deposit of funds electrically into a bank account rather than in physical or paper check
