History Of Banks Flashcards
How long have people been using banks for?
Since about 2000BCE
What is linked to the history of banks?
The history of money
What solved the problems of the barter system?
Commodity money
What is commodity money?
Money that has its own value, such as coins made of silver or gold.
What is representative money?
The money that represents the money you have in the bank.
What is an example of representative money?
A cheque
What was the problem with commodity money?
Anybody was able to steal it from you advise it to buy goods for themselves
What was easier to carry around than livestock and crops?
Coins and banknotes
What was the first secure place people stored money?
In temples
Who watched over the money?
Priests
Why were they safe in the temples?
They were scared the gods would get angry with them.
Where and when was the first bank built?
In the fourteenth century in Italy.
Where do people put their savings?
In a savings account in a bank.
What is an ATM?
Automated Teller Machine
They allow you to access tout bank account to basic transactions like withdrawing and checking your bank account.
What is EFT?
Electronic Funds Transfer the transfer of funds using technology.
What isa POS terminal?
Point of sale terminal
Typically a include a computer,a cash register and other equipment used to sell goods or services. They also transmit sales data to be posted to customer accounts
Advantages of banking
3
Payments
Don’t have to go to a bank
Can do it at any time of the day
Disadvantages of banking(4)
Computer virus
Banking scams
Hacking
Fraud
What is currency?
The system of money in general use in a particular country. Money = currency
What does the exchange rate allow you to determine?
How much currency you can exchange for another.
What is an exchange rate? (2)
- The price of one country’s currency expressed in another country’s currency.
- The rate at which one currency can be exchanged for another.
What is an ATM?
Automated Teller Machine
They allow you to access tout bank account to basic transactions like withdrawing and checking your bank account.
What is EFT?
Electronic Funds Transfer the transfer of funds using technology.
What isa POS terminal?
Point of sale terminal
Typically a include a computer,a cash register and other equipment used to sell goods or services. They also transmit sales data to be posted to customer accounts
