 Money  History of Money  Bartering  Definition of Money

 How did people pay for goods before we had “money” as we know it today?  A system known as bartering

Today, bartering no longer exists, except perhaps between friends. E.G. _____________

 In order to barter, each person had to have goods or services that the other person wanted  Both items had to be of equal value  The goods being exchanged had to be carried around- very awkward if the goods were heavy or bulky

 Money is anything of value that is widely accepted as payment for goods and services

 Medium of exchange  Measurement of value  Standard of deferred payments  Store of value

 On 1 st January 2002, Ireland along with 11 other members joined the Euro  The EMU was formed (Economic and Monetary Union)  There are 17 countries now in the Euro zone  Can you name a country other than Ireland that uses the Euro?

Eurozone Countries

 No exchange rate issues  No currency exchange fees  Ireland’s interest rate should stay relatively low  Ireland’s inflation rate should also stay low

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Cheque:  A written instruction to your bank to pay a sum of money to another person. 9

Cheque: (continued)  There are three parties to a cheque: ◦ drawer — the account holder ◦ drawee — the bank where the account is held ◦ payee — the person being paid the money 9

 A cheque contains the following additional information: 9 1. Date2. Amount in words3. Amount in figures 4. Drawer’s signature5. Cheque number6. Account number 7. Branch sort code8. Purpose of payment9. New balance in account

Crossing a cheque  Crossing a cheque involves drawing two parallel lines across the front 9

Plastic Cards:  Banks provide a number of “plastic” cards for their current account holders: ◦ Laser (Debit) Card ◦ ATM Card ◦ Cheque Guarantee Card ◦ Credit Card  People use “plastic” to pay for goods and services and to transfer money to other people without using cash. 9

 Money can be transferred electronically in the following ways:  Direct Debit A direct debit can be used to make a regular payment where the amount changes each time, e.g. the electricity bill  Standing Order A standing order can be used to make a regular payment where the amount is the same each time, e.g. a regular donation to charity 9

 Money can be transferred electronically in the following ways:  Bank Giro Credit Transfer A bank giro credit transfer is used to make a single payment to another person through the bank, e.g. paying your TV licence  Paypath Paypath is used by employers to transfer the wages of their employees directly into their bank accounts each payday 9