Money & personal banking Flashcards
What is money?
ANy token used in exchange for goods
Barter
Exchanging of one good for another without the use of money
Legal tender
Issued by the central bank and must be accepted as payment
What are the functions of money?
It is a means of exchange - used to buy things
It is a measure of value - used to measure the price of things
It is a store of wealth - a way of saving
What are the features of money?
Portable
Durable
Divisible
Scarce in supply
Other forms of money?
Currency ( notes / coins ) Cheques Travellers cheques Credit cards Debit cards
ECB
European Central Bank
EFTPOS
Electronic funds transfer at point of sale
PIN
Personal identity number
Chip + pin
System used when buying goods by debit card
ATM
Automated Teller machine
Standing order (SO)
An instruction from a bank account holder to the bank to pay from his account:
A fixed sum of money
On a regular basis
Direct debit (DD)
Gives a creditor permission to apply to his debtors bank account:
A variable sum of money
On a regular basis
The debtor fills out a direct debit mandate to allow them to apply for the money due.
Credit transfer (CT)
Allows you to transfer money from your own bank account to another persons bank account
Paypath
An electronic means of transferring an employee’s wages from the employer’s bank account to the employee’s bank account
Paypal
A safe way to pay for goods online without disclosing your details.
Current account
Allows you to lodge and withdraw money at anytime. used for day-to-day transactions.
ATM services
Withdraw money, pay bills, check account balance
Debit card
Buy now pay now. The amount is taken instantly from the account holder’s bank account
Credit card
Buy now pay later. Amount due must be paid in full when bill is sent
Cheque
A written instruction to a bank to pay a stated sum of money from your bank account to a stated person.
Online and mobile banking
Allows people to access their current accounts at any time using a computer or mobile device that has internet access
Features of online and mobile banking
Access bank details
view account balance
view payments coming in and out of the account
transfer money electronically to other accounts
set up standing orders and direct debits
