Unit A

Functions of money : 

• Unit of Account
• Means of Exchange
• Store of Value
• Legal Tender

Method of Payments : 

• Cash - Notes and coins in a wide range of denominations
• Debit Card - Issued by banks with payments for goods and services being deducted directly from a current account
• Credit Card - Issued by financial institutions allowing customers to delay payments for goods and services
• Cheque - A written order to a bank to make a payment for a specific amount of money from one person's account to another account
• Electronic Transfer - Payment is transferred directly from one bank account to another
• Direct Debit - An agreement made with a bank allowing a third part to withdraw money from an account on a set day to pay for goods or services received
• Standing Order - An agreement made with a bank to transfer a fixed sum of money to a third part account on a set date on a regular basis
• Pre-paid Card - Money is uploaded onto a card with transactions then being withdrawn to reduce the balance
• Contactless Card - Cards containing antennae allow money to be transferred when the card touches a contactless terminal
• Charge Card - Issued by financial institutions allowing customers to delay payments for goods and services for a short period of time; the balance must be paid off in full when a statement is…