Topic 1 - Purposes of money Flashcards
1
Q
Name the key features of money.
A
- acceptable
- recognisable
- stable
- divisible
- durable
- portable
- scarce but sufficient
- homogeneous
2
Q
Name the functions of money
A
- unit of account
- A means of exchange
- a store of value
- a means of borrowing and paying debt
3
Q
Define acceptable
A
(A feature of money) to be widely accepted
4
Q
Define bartering
A
To exchange goods and services for other goods and services without using money. Bartering relies on a double coincidence of wants where both parties should be willing to accept what the other has to offer.
5
Q
What is a current account?
A
A bank or building society account where people can store their money in the form of electronic balances and withdraw it to make payments.
6
Q
Define denomination
A
A group of coins or notes that share the same face value.
7
Q
Define divisible
A
To be easily divided into amounts of different value.
8
Q
What are the drawbacks of using items with intrinsic value?
A
- some items aren’t durable
- Some items aren’t divisible
