Exchange 12/ 02 / 09 Exchange of goods and services Exchange place – markets Need for exchange – satisfy needs and wants Income – use to purchase goods and services Bartering – exchange of goods for goods Goods of similar value and what is needed

MONEY Medium of exchange Has value Used to pay for goods and services Keeps value for long period Before coins and notes – shells, salt and precious stones used Central of country issue money South African Reserve Bank Financial Institutions – Banks Electronic banking Means of payment other than money – credit card, debit card, cheques etc

FOREIGN TRADE Involves one country buying and selling goods and services to another International trade – part of global economy Foreign exchange – currencies of countries Rates of exchange set each day – changes everyday South Africa – based on gold standard