One of the key features of money- to be widely accepted
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Barter
To exchange goods and services for other goods and services without using money.
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Current account
Bank or building society accounts where people can store their money in the form of electronic balances and withdraw it to make payments.
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Denomination
A group of coins or notes that have the same face value.
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Divisible
A key feature of money- to be easily divided into amounts of different value
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Double coincidence of wants
A situation in which two people have goods or services to trade and each wants what the other person can provide
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Durable
A key feature of money- to be strong enough to be reused in many transactions
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Face Value
The value marked on a coin or note
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Fiduciary Value
Value based on the trust in the banking system
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Homogeneous
A key feature of money- to look and feel the same as other coins and notes of the same denomination
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Inflation
A rise in prices, which means that the purchasing power of money falls
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Intrinsic Value
The value that an item has in itself, eg a bag of rice has intrinsic value because it is a staple food; a solid gold coin has intrinsic value because it is made of precious metal; a banknote does not have intrinsic value bc it is a piece of paper.
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Legal Tender
Coins or banknotes that must be accepted if offered in payment of debt
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Means of exchange
A function of money- to allow people to make payments
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Money
Anything widely accepted as a means of making payments.
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Payment mechanism
A means of transferring money from one account to another
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Portable
A kay feature of money- to be small and light enough to carry around easily
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Purchasing power
The quantity of goods or services that money can buy
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Rate of exchange
How much one item is worth in terms of different items
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Recognisable
A key feature of money- to be easily identified as genuine money.
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Representational value
The value an item represents rather than the value it has in itself; a banknote is just a piece of paper but it represents the value printed on it
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Scarce but sufficient
A key feature of money- to be available in sufficient quantities to meet people's needs but not in such quantities that the value of money falls
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Store of value
An attribute of money that allows people to store money now and spend it later
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Transaction
Buying or selling something
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Unit of Account
A function of money- to allow people to compare prices and to measure the value of money in a bank account, etc.
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Other cards in this set
Card 2
Front
To exchange goods and services for other goods and services without using money.
Back
Barter
Card 3
Front
Bank or building society accounts where people can store their money in the form of electronic balances and withdraw it to make payments.
Back
Card 4
Front
A group of coins or notes that have the same face value.
Back
Card 5
Front
A key feature of money- to be easily divided into amounts of different value
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