Cash and Cheques
What is a cash payment?
Paying directly with physical money (coins and notes).
How many Consumer Rights did we learn in class?
Nine
Define Money
Money can be defined as anything with monetary value which everyone is willing to accept or receive in exchange for goods and services
Money is limited in supply.
True or False : Commercial banks only keep money; they do not give loans
False
Describe an advantage of using cash.
* Suitable for small payments
* Instant payment
Five
Name another form of money
Debit Card, Credit Card, Cheques, MPaisa
Money is used to buy goods and services. What is this function of money called?
Medium of exchange.
Name two functions of a commercial bank
Accepting deposits, Providing loans, Facilitating payments, Currency exchange, Safekeeping valuables
In your own words, describe what a cheque is.
A written order instructing a bank to pay a specific amount to a person or business.
Define the word "Consumer"
A consumer is someone who uses goods and services.
One of the qualities of money is "portable". What does it mean?
Money could be easily carried around.
Money can be saved and used later without losing value. What is this function of money called?
Store of value
True or False : Banks provide a safe place for people to keep their money.
True
What is a disadvantage of using cash?
It can be lost or stolen
Name one Consumer Responsibility.
The Responsibility of Critical Awareness/ The Responsibility of Action/ The Responsibility of Social Concern/ The Responsibility of Environmental Awareness/ The Responsibility of Solidarity
One of the qualities of money is "homogeneous". What does this mean?
Identical units have identical values
Money allows for borrowing and lending. What is this function of money called?
Standard of deferred payment.
True or False: You can exchange foreign currency at some commercial banks
True
What is an advantage of using cheques?
It is suitable for larger payments / Only the person whose name is on the cheque is able to cash it at the bank (if the cheque goes missing) / A stop payment can be put on the cheque if it is lost.
Name two consumer rights.
The Right to Basic Need/The Right to Safety/The Right to Information/The Right to Make a Choice/The Right to Representation/The Right to Redress/The Right to Consumer Education/The Right to a Healthy Environment/The Right to Service
Name the seven qualities of money
Acceptable, Portable, Durable, Divisible, Scarce, Homogeneous, Recognizable
What are the four functions of money?
Store of value, Standard of deferred payment, Medium of exchange and Unit of account
What is a commercial bank?
A financial institution that offers services like accepting deposits, providing loans, and facilitating payments.