LIBF Unit 1 topics 1, 2, 3, 4, 5 & 6. Full exam review. Rated A+
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LIBF
LIBF Unit 1 topics 1, 2, 3, 4, 5 & 6. Full exam review. Rated A+
Acceptable - -One of the key features of money - to be widely accepted.
Barter - -To exchange goods and services for other goods and services without using money.
Current account - -Bank or building society accounts where p...
5 amp 6 full exam review rated a acceptable one of the key features of money to be widely accepted barter to exchange goods and services for other goods
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LIBF Unit 1 topics 1, 2, 3, 4, 5 & 6. Full
exam review. Rated A+
Acceptable - ✔✔-One of the key features of money - to be widely accepted.
Barter - ✔✔-To exchange goods and services for other goods and services without using money.
Current account - ✔✔-Bank or building society accounts where people can store their money in the
form of electronic balances and withdraw it to make payments.
Denomination - ✔✔-A group of coins or notes that share the same face value.
Divisible - ✔✔-A key feature of money - to be easily divided into amounts of different value.
Double coincidence of wants - ✔✔-A situation in which two people have goods or services to trade and
each wants what the other person can provide.
Durable - ✔✔-A key feature of money - to be strong enough to be reused in many transactions.
Face value The value marked on a coin or note (eg 1p, 2p, 5p, £5, £10). - ✔✔-
Fiduciary value - ✔✔-Value based on trust in the banking system.
Homogeneous - ✔✔-A key feature of money - to look and feel the same as other coins and notes of the
same denomination.
Inflation - ✔✔-A rise in prices, which means that the purchasing power of money falls.
, Intrinsic value - ✔✔-The value that an item has in itself, eg a bag of rice has intrinsic value because it is a
staple food; a solid gold coin has intrinsic value because it is made of a precious metal; a banknote does
not have intrinsic value because it is a piece of paper.
Legal tender - ✔✔-Coins or banknotes that must be accepted if offered in payment of a debt.
Means of exchange - ✔✔-A function of money - to allow people to make payments.
Money - ✔✔-Anything widely accepted as a means of making payments.
Payment mechanism - ✔✔-A means of transferring money from one account to another eg debit card,
cheque.
Portable - ✔✔-A key feature of money - to be small and light enough to carry around easily.
Purchasing power - ✔✔-The quantity of goods or services that money can buy.
Rate of exchange - ✔✔-How much one item is worth in terms of a different item, eg one bag of flour is
worth four nails, one British pound is worth 1.5 euros, etc.
Recognisable - ✔✔-A key feature of money - to be easily identified as genuine money.
Representational value - ✔✔-The value that an item represents rather than the value it has in itself: a
banknote is just a piece of paper but it represents the value that is printed on it.
Scarce but sufficient - ✔✔-A key feature of money - to be available in sufficient quantities to meet
people's needs but not in such quantities that the value of money falls.
Store of value - ✔✔-An attribute of money that allows people to store money now and spend it later.
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