Topic 1 key terms(purposes of money) Flashcards
Definition:Acceptable
Answer:To be widely accepted
Definition:Barter
Answer:To exchange goods and services for other goods and services without using money
Definition:Current account
Answer:Bank or building society accounts where people can store their money in form of electronic balances
Definition:Divisible
Answer:To be easily divided into amounts of different value
Definition:Durable
Answer:Strong enough to be reused in many transactions
Definition:Face value
Answer:Value marked on a coin or note
Definition:Homogeneous
Answer:Look and feel the same as other coins and notes
Definition:Inflation
Answer:A rise in prices which means purchasing power of money falls
Definition:Intrinsic Value
Answer:The value an item has in itself
Legal tender
Definition:Coins or banknotes that must be accepted if offered in payment of debt
Means of exchange
Definition:to allow people to make payments
Money
definition:anything widely accepted as a means of making payments
Portable
Definition:to be small and light enough to carry around easily
purchasing power
Definition:the quantity of goods or services that money can buy
Rate of exchange
Definition:How much one item is worth in terms of a different item
Recognisable
definition:to be easily identified as genuine money
Representational value
definition:the value that an item represents rather than the value it has in itself
scarce but sufficient
definition:to be available in sufficient quantities to meet peoples needs but not in such quantities that the value of money falls
store of value
definition:attribute of money that allows people to store money now and spend it later
transaction
definition:buying or selling something
unit of account
definition:to allow people to compare prices and to measure the value of money in a bank account
