The Economy: History Of Money Flashcards
Give 3 advantages of bartering
2 people can get what they need and get rid of what they don’t want
Goods are only produced to meet the needs
It is flexible as different good or services can be exchanged
What is bartering?
Bartering is about exchanging good and services without using money, but reaching an agreement instead
Give 3 disadvantages of bartering
2 peoples wants need to coincide, both must be happy
It is difficult to value the various items that are being exchanged
Everyone is not honest and the products have no warranty/guarantee
What is a promissory note?
It is a note of agreement between two people in which one person promises to pay the other person a certain amount of money by a certain date or on demand
What happens when you borrow money from the bank?
They make you sign a promissory note that sets out the terms of the loan, including the amount and how long you have to pay it off
What does EFT stand for?
It stands for Electronic Funds Transfer
What does ATM stand for?
It stands for Automatic Teller Machines
What does PIN stand for?
It stands for Personal Identity Number
Give 4 of the different functions of money
Unit of value
Medium of payment
Maintains a healthy economy
Encourages savings
Give the 3 characteristics of money
Its durable, divisible and its transportable
