Chapter 3 Flashcards
Is money whose value comes from a commodity of which it is made; it consists of objects having value or use themselves as well as their value in buying goods
Commodity Money
Is a currency without intrinsic value that has been established as money, often by government regulation
Fiat Money
Is valued because it is the legal tender authorized to be used as a form of payment.
Paper Money
A negotiable instrument in the form of a bill of exchange
Check
Is an unconditional order in writing addressed by one person to another; signed by the person giving it; requiring the person whom it is addressed to pay on demand or at a fixed determinable future time, a sum certain in money to order or to bearer.
Bill of Exchange
The one who issues and draws the order bill
Drawer
The party to whom the bill is addressed and who is ordered and expected to pay
Drawee
A formal document that is able to be transferred or assigned to the legal ownership of another person, thereby, facilitating trade
Negotiable Instruments
These are attached to a bank account and allow you to spend existing funds
Debit Cards
This allows you to spend on credit that you then pay back at a later date
Credit Cards
Is the underlying technology behind the bitcoin
Blockchain
The device acts as a prepaid bearer instrument which does not necessarily involve bank accounts in transactions
E-Money
An economic state whereby financial transactions are not conducted with money in the form of physical banknotes or coins, but rather through the transfer of digital information, usually an electronic representation of money between the transacting parties
Cashless Society
A card issued by a bank allowing the holder to transfer money electronically to another bank account when making a purchase
Debit Card
It can be accessed remotely via a device like mobile phones or prepaid cards
E-Money
