Money & personal banking

Question 1

What is money?

Answer 1

ANy token used in exchange for goods

Question 2

Barter

Answer 2

Exchanging of one good for another without the use of money

Question 3

Legal tender

Answer 3

Issued by the central bank and must be accepted as payment

Question 4

What are the functions of money?

Answer 4

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

Question 5

What are the features of money?

Answer 5

Portable
Durable
Divisible
Scarce in supply

Question 6

Other forms of money?

Answer 6

Currency ( notes / coins ) 
Cheques
Travellers cheques
Credit cards
Debit cards

Question 7

ECB

Answer 7

European Central Bank

Question 8

EFTPOS

Answer 8

Electronic funds transfer at point of sale

Question 9

PIN

Answer 9

Personal identity number

Question 10

Chip + pin

Answer 10

System used when buying goods by debit card

Question 11

ATM

Answer 11

Automated Teller machine

Question 12

Standing order (SO)

Answer 12

An instruction from a bank account holder to the bank to pay from his account:
A fixed sum of money
On a regular basis

Question 13

Direct debit (DD)

Answer 13

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.

Question 14

Credit transfer (CT)

Answer 14

Allows you to transfer money from your own bank account to another persons bank account

Question 15

Paypath

Answer 15

An electronic means of transferring an employee’s wages from the employer’s bank account to the employee’s bank account

Question 16

Paypal

Answer 16

A safe way to pay for goods online without disclosing your details.

Question 17

Current account

Answer 17

Allows you to lodge and withdraw money at anytime. used for day-to-day transactions.

Question 18

ATM services

Answer 18

Withdraw money, pay bills, check account balance

Question 19

Debit card

Answer 19

Buy now pay now. The amount is taken instantly from the account holder’s bank account

Question 20

Credit card

Answer 20

Buy now pay later. Amount due must be paid in full when bill is sent

Question 21

Cheque

Answer 21

A written instruction to a bank to pay a stated sum of money from your bank account to a stated person.

Question 22

Online and mobile banking

Answer 22

Allows people to access their current accounts at any time using a computer or mobile device that has internet access

Question 23

Features of online and mobile banking

Answer 23

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