Topic 1 key terms(purposes of money) Flashcards

1
Q

Definition:Acceptable

A

Answer:To be widely accepted

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2
Q

Definition:Barter

A

Answer:To exchange goods and services for other goods and services without using money

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3
Q

Definition:Current account

A

Answer:Bank or building society accounts where people can store their money in form of electronic balances

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4
Q

Definition:Divisible

A

Answer:To be easily divided into amounts of different value

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5
Q

Definition:Durable

A

Answer:Strong enough to be reused in many transactions

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6
Q

Definition:Face value

A

Answer:Value marked on a coin or note

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7
Q

Definition:Homogeneous

A

Answer:Look and feel the same as other coins and notes

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8
Q

Definition:Inflation

A

Answer:A rise in prices which means purchasing power of money falls

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9
Q

Definition:Intrinsic Value

A

Answer:The value an item has in itself

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10
Q

Legal tender

A

Definition:Coins or banknotes that must be accepted if offered in payment of debt

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11
Q

Means of exchange

A

Definition:to allow people to make payments

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12
Q

Money

A

definition:anything widely accepted as a means of making payments

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13
Q

Portable

A

Definition:to be small and light enough to carry around easily

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14
Q

purchasing power

A

Definition:the quantity of goods or services that money can buy

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15
Q

Rate of exchange

A

Definition:How much one item is worth in terms of a different item

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16
Q

Recognisable

A

definition:to be easily identified as genuine money

17
Q

Representational value

A

definition:the value that an item represents rather than the value it has in itself

18
Q

scarce but sufficient

A

definition:to be available in sufficient quantities to meet peoples needs but not in such quantities that the value of money falls

19
Q

store of value

A

definition:attribute of money that allows people to store money now and spend it later

20
Q

transaction

A

definition:buying or selling something

21
Q

unit of account

A

definition:to allow people to compare prices and to measure the value of money in a bank account