Economics - the role of money and financial markets (2.8)

Money

Anything that is acceptable as a means of payment for goods and services

Medium of exchange

Anything that set the standard of value of goods and services acceptable to all parties involved in a transaction

Financial sector

Consists of financial organistations and their products and involves the flow of capital

Banks

financial institutions licensed to receive deposits and make loans

Building societies

Mutual finacial organisations that are owned by their members

Insurance

Is a contract represented by a policy in which and individual or organisation receives protection or reimbursement against losses from an insurance company

saving

It is the part of an individual’s income which is not spent on consumption

Borrowing

Is receiving money (or something of value) in exchange for an obligation to pay it back at a specified time in the future

Investment

Is the purchase of capital goods that are used to produce future goods and services. It is also an asset purchased to provide income in the future and/or to be sold for profit