Chapter 7~Money Flashcards
Bartering?
Swapping goods or services one person has for goods or services another person has
Legal tender?
A medium of payment allowed by law for meeting a financial obligation. Usually the notes and coins in the official currency of a country
The ECB?
The European Central Bank is the governing body of all EU central banks and it is responsible for making financial decisions for the EU
The EMU?
The Economic and Monetary Union. The 18 EU countries (including Ireland) that use a single currency, the euro
Money?
Anything of value that is widely accepted as payment for goods or services
3 disadvantages of bartering
- both people involved in the barter must have a good and service that the other person needs/ wants
- both items involved in the barter would have to be of equal value
- the goods have to be carried around, which would be difficult if they are bulky
3 characteristics of money
- it has to be easy to break into smaller units
- it has to be small, light and easy to carry around
- everyone has to accept it as payment for goods and services
3 advantages of a single currency
- Ireland has lower interest rates than it did in the past
- firms don’t have to worry about exchange rates changes
- Irish firms that trade with eurozone countries save money as they no longer have to pay commission for changing currency
Austria?
Euro
Belgium?
Euro
Cyprus?
Euro
Estonia?
Euro
France?
Euro
Finland?
Euro
Greece?
Euro
Germany?
Euro
