1.18

Question 1

What is barter?

Answer 1

Barter is an early method of payment that involves swapping or exchanging one good for another.

Question 2

What are the problems associated with barter?

Answer 2

Problems with barter include:
* Difficulty in calculating the value of items
* Need for a double coincidence of wants

Question 3

What is money?

Answer 3

Money is anything people generally accept as payment in exchange for goods and services.

Question 4

What types of items were used as money in earlier societies?

Answer 4

Earlier societies used items such as:
* Gold
* Shells
* Rum
* Salt
* Cattle
* Coloured stones

Question 5

What has technology’s impact been on payment methods?

Answer 5

Technology has led to a shift towards a cashless society where electronic payments are preferred.

Question 6

What is ‘tap and go’ technology?

Answer 6

‘Tap and go’ technology allows for payments of under $100 by tapping a debit or credit card, keyring, or mobile phone against a terminal.

Question 7

Name some smartphone apps that facilitate mobile payments.

Answer 7

Smartphone apps for mobile payments include:
* Apple Pay
* Google Pay
* Samsung Pay

Question 8

What should consumers remember when using electronic payment technologies?

Answer 8

Consumers should remember safety issues such as:
* Keeping track of spending
* Checking statements regularly
* Contacting the bank for irregularities

Question 9

True or False: Barter is still used in some parts of the world.

Answer 9

True

Question 10

Fill in the blank: The development of _______ overcame the problems of barter.

Answer 10

money

Question 11

What are financial institutions doing to encourage electronic banking?

Answer 11

Financial institutions are structuring transaction fees and charges to encourage customers to adopt electronic banking.