Money
Barter is trading a good or service for another good or service. Eg. Exchanging two cows for five chickens. Disadvantages of Barter
1. Double coincidence of needs and wants: Both people want to exchange their good/service for something they need 2. Difficult to decide the value of a product 3. Difficult to save Characteristics of Money
2. Portable - easy to transport 3. Divisible - able to make it into smaller amounts 4. Durable - it shouldn't rip or tear 5. Scarce - the amount of money is controlled by the Central Bank Functions of money
A measure of value: Prices how valuable a good or service is. An efficient credit system: Ability to borrow money A store of wealth (A means of saving): ability to save money for when you need it. |
Forms of MoneyCash/Currency
The notes and coins that we use every day. Our currency is the Euro (€) Cheques A cheque is a written statement that transfers money from one account to another. Bank Draft A cheque issued by the bank Travellers cheque Receiving a bank cheque in a different currency, which can be used in a country that uses a different currency. Plastic Money Cards Transactions known as EFTPOS (Electronic funds transfer at point of sale) Debit/Laser Cards: The card is swiped and put into a chip and pin device. The cards money is taken directly out of a current account, and a PIN (personal identification number) is needed. The debit card is paid for in advance. You can Withdraw money from an ATM (Automated Teller Machine) using your laser card. You can withdraw money using a Credit Card also, but interest is charged. Credit Cards: Short term loan that allows you to pay for goods/services after you receive them (bought on credit). Each month the cardholder gets a statement of the transactions they made. They must pay the outstanding balance within 28 days. If they do not, a high rate of interest is charged e.g. Mastercard Charge Cards: These are the same as credit cards, except you must pay your balance in full when you receive your statement e.g. American Express Smart Card: A prepaid money card. Similar to a laser card but you top up your card like topping up mobile phone credit e.g. o2 money card Other Methods of Payment: Standing Order (SO): An agreement with the bank to take the same amount of money out of your account at the same time each week or month e.g. weekly savings plan or Mortgage. Direct Debit (DD): An agreement with the bank to take a different amount of money out of your account at a different time each week or month e.g. ESB bill. Credit transfer (CT): A way to transfer money from one bank account directly to another. Paypath: A way of transferring wages directly from an employer's bank account to an employee's bank account. Paypal: A safe way to shop online without showing credit card, debit card or bank account details to the seller. It transfers the payment directly from your bank account to the seller's. Legal Tender: A form of money that must be accepted by a creditor (Person who you owe money). This is notes and coins. |
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Chapter Questions
These questions are multiple choice, Choose one of the three answers.
1. What is money?
a. A method of payment for a good or service.
b. trading a good or service for another good or service.
c. euros
2. Which of these is not a characteristic of money?
a. Durable
b. Recognisable
c. Plentiful
3. Which of these is a function of money?
a. To go to the cinema
b. A means of exchange
c. To get your hair cut.
4. Which is not a form of money
a. cheque
b. Food
c. Laser Card
5. What is a bank draft ?
. A birthday card.
b. A fake cheque
c. A cheque issued by the bank.
6. What does EFTPOS stand for?
a. Effort for the people of Sligo
b. Elephants feel tired past one session
c. Electronic funds transfer at point of sale
7. How do you use a debit/laser card
a. put it in a cake
b. put it on the counter
c. Put it in a chip and pin device
8. What is a credit card?
a. Short term loan that allows you to pay for goods/services
b. A card paid before in advance
c. A written statement that transfers money from one account to another
9. When might you use paypal?
a. In a grocery shop.
b. In the gym
c. Online shopping
10. What is legal tender?
a. cheques
b. Charge cards
c. Cash - notes/coins
1. What is money?
a. A method of payment for a good or service.
b. trading a good or service for another good or service.
c. euros
2. Which of these is not a characteristic of money?
a. Durable
b. Recognisable
c. Plentiful
3. Which of these is a function of money?
a. To go to the cinema
b. A means of exchange
c. To get your hair cut.
4. Which is not a form of money
a. cheque
b. Food
c. Laser Card
5. What is a bank draft ?
. A birthday card.
b. A fake cheque
c. A cheque issued by the bank.
6. What does EFTPOS stand for?
a. Effort for the people of Sligo
b. Elephants feel tired past one session
c. Electronic funds transfer at point of sale
7. How do you use a debit/laser card
a. put it in a cake
b. put it on the counter
c. Put it in a chip and pin device
8. What is a credit card?
a. Short term loan that allows you to pay for goods/services
b. A card paid before in advance
c. A written statement that transfers money from one account to another
9. When might you use paypal?
a. In a grocery shop.
b. In the gym
c. Online shopping
10. What is legal tender?
a. cheques
b. Charge cards
c. Cash - notes/coins