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Questions and Answers
What is one of the characteristics of money?
What is one of the characteristics of money?
The barter system is a modern method of trading.
The barter system is a modern method of trading.
False
What is one of the functions of money?
What is one of the functions of money?
medium of exchange
Money is a _______ for deferred payments.
Money is a _______ for deferred payments.
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Match the following sources of capital with their descriptions:
Match the following sources of capital with their descriptions:
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What is a disadvantage of the barter system?
What is a disadvantage of the barter system?
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What is a bank draft?
What is a bank draft?
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A consumer is always someone who purchases a good or service.
A consumer is always someone who purchases a good or service.
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What is entrepreneurship?
What is entrepreneurship?
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A _______ is a written instruction to a bank to transfer a certain sum to the account of the payee.
A _______ is a written instruction to a bank to transfer a certain sum to the account of the payee.
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Match the following terms with their definitions:
Match the following terms with their definitions:
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What is e-commerce?
What is e-commerce?
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Study Notes
Instruments of Exchange
- Bank draft: a payment guaranteed by the issuing bank, drawn from the payer's account, and similar to a check.
- Cheque: written instructions to a bank to transfer a certain sum to the payee's account.
- Banknotes: cash.
Electronic Transfers
- Electronic transfer: any transfer of funds made electronically.
- Mobile Money: the use of cell phones to transfer money electronically.
- Money Transfer: the action of moving money from one account to another digitally.
E-commerce and Profit
- E-commerce: trading of goods and services using online communications.
- Profit: financial gain obtained by spending less than what was earned.
Market and Goods
- Market: any situation or place where buyers and sellers meet.
- Goods: finished products sold to consumers.
- Commodity: raw materials traded on exchanges.
Consumer vs. Customer
- Customer: an organization or individual who purchases a product or service to resell, gift, or use it.
- Customer: someone who purchases a good or service to fulfill their needs.
- Consumer: anyone who uses a product or service, but they don't always pay for it.
- Consumer: a person who ultimately consumes a good or service.
Entrepreneurship
- Entrepreneurship: the ability and readiness to develop, organize, and run a business enterprise, along with its uncertainties, to make a profit.
Characteristics of Money
- Acceptability
- Scarcity
- Durability
- Divisibility
- Recognizability
Functions of Money
- Medium of exchange: money is accepted as payment for goods and services.
- Store of value: money can be saved and will keep its value.
- Standard for measuring values: money helps in determining the value of goods and services.
- Standard for deferred payments: money allows for borrowing and credit payments.
- Transfers value: value can be transferred from one person to another.
Barter System
- Facilitates trade without money.
- Enables the disposal of surplus production.
- Increases the availability of goods.
- Laid the foundation for the organized method of trading.
Disadvantages of Barter System
- Lack of double coincidence of wants.
- Lack of common measure of value.
- Difficulty in deferring payments.
- Indivisibility of goods.
- No storage of value.
Sourcing Capital
- Business Loans
- Savings
- Crowdfunding
- Grants and Competitions
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Description
This quiz covers various banking instruments and payment methods, including bank drafts, checks, banknotes, electronic transfers, and mobile money.
