TOPIC 1

Question 1

Current account

Answer 1

Bank or building society accounts where people can store their money in the form of electronic balances and withdraw it to
make payments.

Question 2

Denomination

Answer 2

A group of coins or notes that share the same face value.

Question 3

Fiduciary value

Answer 3

Value based on trust in the banking system.

Question 4

Homogeneous

Answer 4

All notes and coins need to feel and look the same if they are of the same denomination.

Question 5

Intrinsic value

Answer 5

The value that an item has in itself, e.g. a bag of rice has intrinsic value because it is a staple food.

Question 6

Portable

Answer 6

Money can be small enough and light enough to be carried around

Question 7

Purchasing power

Answer 7

The quantity of goods and services money can buy.

Question 8

Representational value

Answer 8

The value that an item represents rather than the value it has in itself: a banknote is just a piece of paper or polymer but it represents the value that is printed on it.

Question 9

Unit of account

Answer 9

A function of money – to allow people to compare prices and to measure the value of money in a bank account, etc.

Question 10

What are the 8 features of money

Answer 10

Acceptable
Durable
Recognisable
Portable
Stable
Scarce but sufficient
Divisible
Homogeneous