key Business Terms
This means the exchange of goods for other goods without the use of money
Barter
When money is used to buy a product or service, which function of money is being utilized?
Medium of exchange
For money to be widely accepted in transactions, it needs to be
Acceptable
A user can spend money that they have already deposited in a bank account through the use of a
Debit card
what is the method of moving money between accounts using online banking
Electronic Transfer
This is the money remaining after all expenses have been paid
Profit
Which function enables parties to agree on a payment plan for transactions that will occur at a later date?
Standard of deferred payment
Which characteristic of money refers to its ability to be easily carried and used in transactions?
Portability
What financial instrument allows consumers to borrow money up to a certain limit to make purchases, typically requiring repayment with interest?
Credit card
What digital payment method allows users to store and manage payment information while making purchases and paying with their smartphones?
Mobile money/wallets
This is the person that buys the goods to satisfy their wants and needs
Consumer
Which function of money ensures that it can be saved and retrieved in the future with its value intact?
Store of value
The characteristic of money that allows it to be divided into smaller units is known as:
Divisibility
What type of financial instrument is often used for making payments where the funds are withdrawn directly from the payer's bank account?
Cheques
What is the term for banking services that can be accessed 24/7 without visiting a physical branch?
Internet banking
This is a system that allocates or shares scarce resources by deciding what should be produced, for whom and by whom
Market
What function of money is essential for credit transactions, allowing borrowers and lenders to establish terms for repayment?
Standard of Deferred payment
When evaluating the properties of money, which aspect ensures that it does not easily get damaged or destroyed, contributing to its longevity?
Durability
What type of payment instrument is issued by a bank, guaranteeing a specified amount of money to the payee and often used for large transactions or secure payments?
Bank Draft - is a payment that is like a check, but its amount is guaranteed by the issuing bank.
What document is used in trade to order payment from one party to another at a future date?
Bill of exchange
This means a group of persons using resources or things that are arranged in a certain way to carry out specific activities in order to achieve a goal
Organization
What is the term for the function of money that allows it to act as a benchmark for pricing, making it easier for consumers and businesses to make informed decisions?
Unit of account
What characteristic of money ensures that each unit is identical in appearance and function, making it easily recognizable and acceptable in transactions?
Homogeneous/Uniform
What type of payment instrument is prepaid and can be used to send money securely without needing a bank account?
Money order -These are a printed order for payment of a specified sum, and facilitated by a bank or post office. They are considered a ‘safe’ form of payment whether they are accepted by a seller or used by a buyer.
What banking method enables users to check account balances and transfer funds using automated voice response systems?
Tele-banking