Term 1

Question 1

Advantages of electronic banking:

Answer 1

1. quicker (don’t have to go to bank)
2. effective (happens faster)
3. accessible (anytime anywhere)

Question 2

Disadvantage of electronic banking:

Answer 2

Security (if someone gains access to your log-in details and password, they could take over your money)

Question 3

Problems with bartering

Answer 3

inefficient as each person must want what the other has and be prepared to trade for it.(double want)

Question 4

Why was money invented?

Answer 4

To solve double want problem

Question 5

Characteristics of money:

Answer 5

1. Scarce
2. Durable
3. Portable
4. possible to be divided

Question 6

Characteristics of bank cards:

Answer 6

1. Scarce
2. Durable
3. Portable
4. Divisible

Question 7

Bank cards show following information:

Answer 7

1. Name of bank that issued card
2. Identity of card holder(name & signature)
3. Unique card number
4. Date which card expires
5. Security feature(magnetic chip or electronic strip)

Question 8

Individual needs:

Answer 8

1. Water
2. Food
3. Shelter
4. Security

Question 9

Community needs:

Answer 9

1. Protection against criminals
2. Education & training
3. Medical care
4. Entertainment

Question 10

National needs:

Answer 10

1. Law & order

2. Protection from invasion

Question 11

Name 2 types of Primary needs

Answer 11

1. Physical needs

2. Security needs

Question 12

Name 2 types of secondary needs

Answer 12

1. Social needs

2. Self-esteem needs

Question 13

Name 5 physical needs

Answer 13

1. the need for oxygen
2. the need for food
3. the need for water
4. the need to sleep
5. the need to be protected from the weather

Question 14

Name 4 Security needs

Answer 14

1. the need to feel that others will not hurt us
2. the need to feel that our belongings will not be taken or broken by others
3. the need for structure, rules and order
4. the need to know that we live and work in a safe environment.

Question 15

Name 4 social needs

Answer 15

1. the need to have friends
2. the need to be part of a team or group
3. the need to feel that we belong somewhere
4. the need to give & receive love

Question 16

Name 4 self-esteem needs

Answer 16

The need to…

1. achieve success
2. be good at something
3. feel that what we do is important and valuable
4. be recognised and feel that others respect us

Question 17

How do people satisfy their needs?

Answer 17

They make or buy goods and services

Question 18

What is one of the forces behind economic activity?

Answer 18

Getting and owning more is one of the driving forces behind economic activity.

Question 19

What are goods and services?

Answer 19

things people consume in order to satisfy their needs and wants

Question 20

What is the economic problem?

Answer 20

People have unlimited needs and wants but limited resources

Question 21

What do formal businesses need to apply for?

Answer 21

A trading licence

Question 22

What are the 4 different sized businesses and how many people do they employ?

Answer 22

1. micro-enterprise = less than 5
2. small business = 5-50
3. medium-sized business = 50-200
4. large business = 200+

Question 23

What are the 3 types of businesses?

Answer 23

1. Manufacturing business
2. Trading business
3. Service business

Question 24

Name 4 advantages of formal businesses

Answer 24

1. Operate from fixed location (customers know where to find them).
   2.