Money Flashcards
1
Q
Drawer
A
Person who writes the cheque
2
Q
Drawee
A
The bank
3
Q
Payee
A
The person who recieves the cheque
4
Q
Cheque
A
A written instruction to a bank to pay a dum of money from a bank account to the named person
5
Q
EFTPOS
A
Electronic funds transfer at point of sale
6
Q
ATM
A
Automated teller machine
7
Q
Credit transfer
A
- This allows you to transfer money from your account to some one else’s
- Can be done either at the bank or online
8
Q
Legal tender
A
- Form of money that creditors are legally obliged to accept
- Notes and coins
- NOT cheques/plastic cards
9
Q
Paypath
A
-Used by employers to page wages directly into employees bank accounts electronically
10
Q
Functions of money
A
- Means of exchange
- Measurement of value
- Store of wealth
- Means of slow repayment
11
Q
Impulse buying
A
- Unplanned buying
- Buying something in the Spur of the moment
12
Q
False economies
A
-something that costs you more in the long run, but at first appears To save you money
13
Q
Collateral
A
- security
- sthing of value used as security against a loan
- bank can sell this if the loan is not repaid
14
Q
Simple interest
A
Fixed amount paid each year
15
Q
Compound interest
A
- fixed percentage each heat calculated on the new sun each year
- Compund Annual Rate/ CAR
16
Q
DIRT
A
Deposit Interets Retention Tax
-percentage of interest removed
