Topic 1 key terms(purposes of money)

Question 1

Definition:Acceptable

Answer 1

Answer:To be widely accepted

Question 2

Definition:Barter

Answer 2

Answer:To exchange goods and services for other goods and services without using money

Question 3

Definition:Current account

Answer 3

Answer:Bank or building society accounts where people can store their money in form of electronic balances

Question 4

Definition:Divisible

Answer 4

Answer:To be easily divided into amounts of different value

Question 5

Definition:Durable

Answer 5

Answer:Strong enough to be reused in many transactions

Question 6

Definition:Face value

Answer 6

Answer:Value marked on a coin or note

Question 7

Definition:Homogeneous

Answer 7

Answer:Look and feel the same as other coins and notes

Question 8

Definition:Inflation

Answer 8

Answer:A rise in prices which means purchasing power of money falls

Question 9

Definition:Intrinsic Value

Answer 9

Answer:The value an item has in itself

Question 10

Legal tender

Answer 10

Definition:Coins or banknotes that must be accepted if offered in payment of debt

Question 11

Means of exchange

Answer 11

Definition:to allow people to make payments

Question 12

Money

Answer 12

definition:anything widely accepted as a means of making payments

Question 13

Portable

Answer 13

Definition:to be small and light enough to carry around easily

Question 14

purchasing power

Answer 14

Definition:the quantity of goods or services that money can buy

Question 15

Rate of exchange

Answer 15

Definition:How much one item is worth in terms of a different item

Question 16

Recognisable

Answer 16

definition:to be easily identified as genuine money

Question 17

Representational value

Answer 17

definition:the value that an item represents rather than the value it has in itself

Question 18

scarce but sufficient

Answer 18

definition:to be available in sufficient quantities to meet peoples needs but not in such quantities that the value of money falls

Question 19

store of value

Answer 19

definition:attribute of money that allows people to store money now and spend it later

Question 20

transaction

Answer 20

definition:buying or selling something

Question 21

unit of account

Answer 21

definition:to allow people to compare prices and to measure the value of money in a bank account