Key terms topic 1

Acceptable
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 share 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 of services to trade and each wants what the other can provide.
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Durable
A key feature of money -to be strong enough to be used 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 trust in the banking system.
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Homogeneous
A key feature of money - to look and feel he 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, a solid gold coin has intrinsic value because it's made of precious metal. A banknote doesn't because it's a piece of paper.
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Legal tender
Coins or banknotes that must be accepted if offered in payment or 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 e.g. debit card, check.
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Portable
A key 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 item.
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Recognizable
A key feature of money of money - to be easily identified as genuine money.
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Representational value
The value that an item represents rather than the value that it has itself.
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Scarce but sufficient
A key feature of money - to be available in sufficient quantities to meet peoples needs but not in such quantities that the value of money fails.
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Story of value
As 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 funtion of money - to allow people to compare prices and to measure the value of money in a bank account.
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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

Preview of the back of card 3

Card 4

Front

A group of coins or notes that share the same face value.

Back

Preview of the back of card 4

Card 5

Front

A key feature of money - to be easily divided into amounts of different value.

Back

Preview of the back of card 5
View more cards

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