History Of Money

Question 1

Three traditional societies that were self-sufficient

Answer 1

Hunter gatherers in South Africa
Twa in zaire
The unuit in Alaska

Question 2

Self-sufficient

Answer 2

When you live on your own, without relying on anyone. Living off the ground

Question 3

Define battering

Answer 3

Bartering is when you exchange goods with others: cattle were traded with chickens and many other things

Question 4

Why was battering not successful

Answer 4

1. Most people could not find what they wanted
2. It was not easy to carry heavy things that were used as exchange
3. It was difficult to work out the real value of items because people attach different values to different different items

Question 5

Nomadic

Answer 5

People who moved from one place to another to live

Question 6

Commodity money

Answer 6

Items that were used as money example: sheep would be traded for three little gold coins

Question 7

What does a Goldsmith do

Answer 7

They kept peoples money locked away in safes. People trusted them to keep it safe

Question 8

Promissory note

Answer 8

A promissory note is signed between one person/business and the issuer. The issuer promises to pay an amount to the payee whenever it is needed/whenever the pay needs it

Question 9

Who issued the first coins in the modern world

Answer 9

Lydian people of Turkey

Question 10

What were the first coins made of

Answer 10

Metal

Question 11

Why with coins and effective form of exchange

Answer 11

Way less to carry
We’re not heavy

Question 12

What is a face value

Answer 12

It refers to how much the coin is worth

Question 13

In what year did China first use paper money

Answer 13

960 CE

Question 14

What does gold standard refer to

Answer 14

All notes being exchanged for actual gold

Question 15

Legal tender

Answer 15

Currency of a country

Question 16

South Africa’s legal tender

Answer 16

Rand

Question 17

What do people use electronic banking for:

Answer 17

Depositing money into their account
Withdrawing money for their account
paying accountants

Question 18

Why do banks offer loans?

Answer 18

When people borrow money they use it to buy expensive things e.g.: house
The bank was charge interest so that they will end up earning more money than what the people took from them

Question 19

Difference between wages and salaries:

Answer 19

Wages is money paid to Worker on a weekly basis
Salaries is money paid to a worker on a monthly basis

Question 20

PIN

Answer 20

Personal identity number

Question 21

ATM

Answer 21

Automatic Tele machine

Question 22

5 South African bank

Answer 22

Nedbank
Standard bank
Capitec
Absa
Investec
(Nelli stands close and interested)

Question 23

E- banking

Answer 23

Electronic forms of depositing and withdrawing money

Question 24

Benefits of E-banking

Answer 24

Cheaper than depositing money in real life
People far away can deposit money or withdraw money very quickly and easily instead of having to go to the bank

Question 25

Two disadvantages of E-banking

Answer 25

Internet hacking People rely on it and if the system is down then no payment will take place

Question 26

Four key functions of money

Answer 26

Medium of exchange Store of value Unit of account Standard of postponed payment Maddy sits under Sam

Question 27

Security of South African bank notes

Answer 27

Watermark Animal Micro printing Unique numbering Raised printing Security thread Colour changing ink Hidden image

Question 28

Counterfeit money

Answer 28

Illegal notes and coins

Question 29

Credit

Answer 29

And advance on funds

Question 30

Debit

Answer 30

Money owed to other people/business that must be paid back in future