Barter
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39 Terms
What is Barter?
Exchange of goods or services for other goods or services without using money.
What are the advantages of Bartering?
Can be used without money. 2. A means of getting rid of excess goods.
What is a disadvantage of Barter related to wants?
A double coincidence of wants; can only exchange if each party desires what the other party has.
What is a Subsistence Economy?
An economy where early humans satisfied their basic needs from nature, primarily food, shelter, and clothing.
What led to the development of Money?
The drawbacks of barter such as difficulty in exchange, indivisible goods, and perishability.
What is the definition of Money?
A commonly accepted instrument or medium of exchange, such as coins and bank notes.
Name one early form of Money used before coinage.
Cowrie shells, cattle, salt, or sugar.
What was the role of goldsmiths in the history of Money?
Goldsmiths issued receipts as representations of gold owned, leading to the rise of banks.
List one characteristic of Money.
Generally acceptable; Relatively scarce; Easily divisible; Homogenous; Fairly durable; Portable.
What are the functions of Money?
Medium of exchange. 2. Unit of account. 3. Store of value. 4. Means of deferred payment.
What is a Cheque?
An order to the bank to make payments to the payee stated on it.
How does a Credit Card differ from a Debit Card?
A Credit Card allows for loans to be repaid with interest; a Debit Card is linked to an account balance.
What is a Money Order?
A tool to transfer money or make payments, prepaid and typically backed by large agencies.
What is a Bank Draft?
A cheque that guarantees payment to the receiver from the issuing bank.
Define a Bill of Exchange.
An order in writing from an exporter to an importer requiring payment at a fixed future date.
What is Electronic Transfer?
A system used to transfer funds electronically over a computer network.
What services can be accessed through Tele-Banking?
Checking account balances, transaction history, opening a new account, transferring funds.
How does Internet Banking differ from Tele-Banking?
Internet Banking uses the internet to access banking services, while Tele-Banking uses the telephone.
What is Ecommerce?
The buying and selling of goods and services using the internet.
What is Barter?
Exchange of goods or services for other goods or services without using money.
What are the advantages of Bartering?
Can be used without money. 2. A means of getting rid of excess goods.
What is a disadvantage of Barter related to wants?
A double coincidence of wants; can only exchange if each party desires what the other party has.
What is a Subsistence Economy?
An economy where early humans satisfied their basic needs from nature, primarily food, shelter, and clothing.
What led to the development of Money?
The drawbacks of barter such as difficulty in exchange, indivisible goods, and perishability.
What is the definition of Money?
A commonly accepted instrument or medium of exchange, such as coins and bank notes.
Name one early form of Money used before coinage.
Cowrie shells, cattle, salt, or sugar.
What was the role of goldsmiths in the history of Money?
Goldsmiths issued receipts as representations of gold owned, leading to the rise of banks.
List one characteristic of Money.
Generally acceptable; Relatively scarce; Easily divisible; Homogenous; Fairly durable; Portable.
What are the functions of Money?
Medium of exchange. 2. Unit of account. 3. Store of value. 4. Means of deferred payment.
What is a primary role of banks in the economy?
To facilitate the flow of money by accepting deposits and providing loans.
What is a Deposit?
Money placed into a bank account.
What is Interest?
The cost of borrowing money or the return earned on deposited funds.
What is Inflation?
The rate at which the general level of prices for goods and services is rising.
What does the term 'Liquidity' mean in finance?
The ease with which an asset can be converted into cash.
What is a Mortgage?
A loan specifically for purchasing real estate, secured by the property itself.
What is a Financial Asset?
An asset that is liquid and can be traded, such as stocks or bonds.
What is a Savings Account?
A bank account that earns interest on deposits but typically has limited withdrawal options.
What is a Budget?
A plan for managing income and expenses over a certain period.
What is an Investment?
The act of allocating resources, usually money, to generate income or profit.