TOPIC 3 Flashcards
1
Q
State the four functions of money
A
- Medium of exchange
- Store of value
- Measure of value
- Standard of deferred payment
2
Q
State the five characteristics of money
A
- Durability
- Portability
- Acceptability
- Scarcity
- Divisibility
3
Q
What is a central bank?
A
Central banks serve commercial banks and the government
4
Q
What is the role and importance of a central bank?
A
5
Q
What are the functions of a central bank?
A
6
Q
What is a commercial bank?
A
7
Q
Why are commercial banks important?
A
8
Q
3 Roles of a commercial bank
A
9
Q
Define money
A
10
Q
Define wealth
A
11
Q
Define gross income
A
12
Q
Define disposable income
A
13
Q
Define discretionary income
A
14
Q
Define specialisation
A
15
Q
Define division of labour
A
