Do you want this?
Two people who each wants what the other has.
What is a "Double Coincidence of Wants"?
The item is valued because it is in relatively scarce supply.
What is scarce or scarcity?
The early Caribs people of the Caribbean subsisted by providing for their own wants and needs through farming and fishing. Name this type of economy.
What is a subsistence economy?
Name one benefit of barter.
People can access goods that they do not produce.
People can specialize in producing one or small number of goods.
There is no need for money.
A way of transferring funds from one bank account to another automatically without the intervention of bank staff. The money is transferring over a computerized network.
What is an electronic transfer?
A generally accepted means of exchange among people and businesses.
What is money?
When the item is accepted as payment then it serves as money.
What is acceptable or acceptability?
Using gold, precious stones, cowrie shells to trade. Classify this type of economy?
What is a commodity economy?
Name one the disadvantage of barter.
Requires a double coincidence of wants which may not always happen.
There is no common measure of the value of items as compared to money.
It is difficult to save bartered goods the same way as money.
Not easily divisible as compared to money.
May be difficult to transport as compared to money.
This enables the transfer of money from one account to another using telephone communications.
What is tele-banking?
The exchange or trading of goods and services for other goods and services without the use of money.
What is barter?
The item needs to be easy to carry around.
What is portable or portability?
e-wallets, enCASH, telebanking, Google Pay, online banking. Classify this type of economy.
What is the digital economy?
A written instruction to a bank to make payment on behalf of a bank account holder. This written instruction is received when the payee either deposits it into their bank account or goes to the bank teller to cash it in.
What is a cheque?
A form of payment for pre-specified sum of money. They are a safe way of making a payment because the drawer must pay the provider of this instrument with the sum for which the order is made out.
What is a money order?
Output in excess of what a producer requires for his/her own use.
What is surplus production?
The item needs to be hard wearing and long lasting.
What is durable or durability?
Trading through using paper and coins. Name this class of economy.
What is the paper money economy?
What is a telegraphic money transfer?
The transfer of funds overseas.
This card is used to make credit payments online. The owner will be required to pay interest on all funds utilized.
What is a credit card?
Payments that are made in the future.
What are deferred payments?
The item needs to consist of units so large sums can be broken down into smaller units.
What is divisible or divisibility?
This value underpins all trading transactions whether in person or online. Without it, people and businesses can engage in fraudulent activities leading to lawsuits, fines, penalties, fees or imprisonment.
What is the value of trust or integrity in business?
Give one example of a telegraphic money transfer.
A wire transfer.
Involves the use of a cellphone to transfer money between bank accounts as well as deposits in a bank, withdraw funds from an account or pay bills. A cellphone can be used to make payments.
What is M-money, mobile money and mobile wallets?