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EMS Grade 7 Graham > Trade and Money > Flashcards

Trade and Money Flashcards

1
Q

What do we call the system of trade in which the value of something was determined in relation to another object.

A

bartering

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2
Q

What is the double wants problem?

A

If you want to exchange wheat for goats, you have to find someone who has goats AND wants wheat.

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3
Q

What important invention resulted from the double wants problem?

A

Money

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4
Q

How does money solve the double wants problem.

A

It has a standardised value by convention, but no inherent value.

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5
Q

What are the pros and cons of electronic banking>

A

Pros:
Quick - don’t need to go to bank
Convenient - any time, anywhere
Efficient - computers are faster than human tellers

Cons:
Security - someone can steal your password and take control of your money

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6
Q

What are bank cards used for?

A

To make payments

To conduct transactions at ATM

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7
Q

What are the characteristics of money that bank cards have?

A

Scarce - can’t be copied
Durable - don’t fall apart
Portable - easy to carry around
Divisible - can pay any price

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8
Q

What information is shown on a bank card?

A 
Name of the issuing bank
Card holder name and signature
Unique card number
Expiry date
Security feature (magnetic strip or chip) to prevent duplication
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9
Q

Traditional societies lived on what they produced and did not need to trade. What word do we use to describe this?

A

self-sufficient

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10
Q

Give examples of self-sufficient societies.

A

hunter-gatherers (San) in South Africa
Twa in Congo
Inuit in Alaska
Aborigines in Australia

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11
Q

How did/do self-sufficient societies survive?

A

Hunting and gathering - wild animals and food from plants

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12
Q

How did self-sufficient societies get the goods and services they needed?

A

The produced them themselves

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13
Q

What is the name for the economy of a self-sufficient society?

A

A subsistence economy

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14
Q

What were the disadvantages of bartering?

A

Not always practical
Difficult to find what you wanted or needed
Goods were difficult to carry or transport
No common measure of value
Certain goods could not be divided into smaller units
No late payments
Storing goods is difficult
Difficult to know the real value of items

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15
Q

What was the first form of money? Where and when?

A

Cowry shells. China 1200 BC

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16
Q

Where and when were the earliest coins used? What form did they take?

A

Lydia (in Turkey) in 500 BC. Pieces of silver

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17
Q

Where and when were the earliest banknotes used? What were they made of?

A

China 118 BC. :Leather

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18
Q

What do we call a modern society that uses technology to produce goods for trade?

A

Industrialised society

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19
Q

What do modern societies us to pay for goods and services?

A

Coins, bank notes
Debit and credit cards
Electronic/Internet banking

20
Q

How do people with specialised skills provide for their needs?

A

They earn money which they use to buy goods and services produced by other people.

21
Q

What did we call hunters who started to tame and keep animals?

A

Herders

22
Q

When did bartering start?

A

9000 BC

23
Q

What allowed people to specialise in the production of specific goods and services?

A

Trade. They could barter their speciality products and services for other things.

24
Q

What did herders prefer to use their livestock for?

A

Milk rather than meat.

25
Q

What is a promissory note?

A

A written and signed promise to pay a sum of money.

26
Q

What do we call the person to whom the money is promised in a promissory note?

A

Payee

27
Q

What pieces of information are shown on a promissory note?

A 
The words "Promissory Note"
Amount that the note is worth
Interest that will be added
When the payment is to be made
Place where the payment is to be made
Name of the payee
Name of the payer
Payer's signature
Terms of repayment
Date until when the note is valid
28
Q

What are the advantages and disadvantages of using the Internet for buying and banking?

A

Advantages:
Available 24 hours a day
Consumers and producers need not be in the same place
More choice in products and services
Saves on travelling and time
Faster communication and access to information

Disadvantages:
More information required by online store (fill in forms)
Personal information not always safe. Potential for fraud.
Cannot check the quality before you buy
No personalised customer service
Difficult to return faulty goods

29
Q

What are the security features on a South African banknote?

A

Watermark within the paper
Security thread running through the paper
High quality paper
Print quality

30
Q

When people started trading goods for money, they gathered in certain areas to make it easier for buyers and sellers to meet. What do we call this process?

A

Urbanisation

31
Q

What are the uses of money?

A

medium of exchange
unit of account - standard measure of what things are worth
store of value - holds its value over time

32
Q

What is a consumer economy?

A

An economy where businesses encourage consumers to spend as much money as possible on their goods and services.

33
Q

What are sustainable resources?

A

Resources that can be re-generated

34
Q

What are the four characteristics of money?

A

Scarce
Durable
Portable
Divisible into smaller parts

35
Q

What is a surplus?

A

More of something than is needed

36
Q

Why is a surplus important for trade?

A

People could specialise in the production of one item, producing a surplus of that item, which they could then trade for other goods.

37
Q

What were the results of specialisation?

A

More goods are produced

A greater variety of goods is produced

38
Q

What is a market?

A

A place where people come together to buy and sell goods

39
Q

What is indirect trade?

A

Individuals accept money for the products they have produced and then use the money to buy other goods and services.

40
Q

What is money?

A

An object that can be exchanged for goods and services (but has very little inherent value)

41
Q

What is a medium of exchange?

A

An item that is used to make trade easier. E.g. notes and coins

42
Q

What does durable mean?

A

lasts for a long time and is not easily broken or used up

43
Q

What is a cheque?

A

a written instruction to a bank ordering them to pay a certain sum of money to the person named on the cheque

44
Q

What is a credit card?

A

A type of bank card that allows the holder to borrow money to make payments.

45
Q

What is a debit card?

A

A type of bank card that allows the holder to make payments from money that they have deposited in the bank

EMS Grade 7 Graham (9 decks)

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