What is money? Topic 3

What is Money? How did people originally pay for goods before money? Barter, credit, negotiations Money is not only cash but anything that is accepted as payment? True or false What is a factory called that produces money? Press, mint, bank What are problems with bartering? People need to want what you want, items need to be the same value or both of these The word money is named after a goddess from which civilization? Egyptian, Greek, Roman (Juno Moneta) When was the first penny issued in England? 785 AD, 1120 AD 1350 AD The first pound note was printed on one side and could be exchanged for one pound of silver at the Bank of England and was introduced in 1725, although the first bank note was issued in 1694. True or False Our new currency introduced in 1971 is called decimalisation as it is based on units of? 2 5 10 The first banks were set up on benches. Bakki comes from which language? Greek, Norse, Italian Which 2 of the following are not British bank notes? £1 £5 £10 £20 £50 £100 11. All British bank notes say “I promise to pay the bearer on demand the sum of ..” Who males this promise? The Chancellor of the Exchequer, Governor of the Bank of England, Prime Minister 12. How is most money held in England? Cash or electronic balances on screen 13. We are moving to cashless society. Does spending money this way result in us spending more or less than when we use cash? 14. What is the new online currency known as? Bitcoin, e-coin, i-coin, smartcoin

Current account > Holland Overdraft > Scotland Money Quiz (2) What year did Britain get decimalisation? 1851 1901 1971 Which is more often forged coins or notes? When was money first thought to be used? 2000 BC 650 BC 10 AD What does the Bank of England hold to back up the value of its currency? What was often used in prisons as a currency? Cigarettes, gold, silver What is barter? Swapping goods of equal value or setting interest rates Where is all British currency minted or printed? Bank of England or Royal Mint What civilisation did the word money cobe from? Egyptian or Roman When was the first British Bank notes introduced? 1253, 1694, 1850 Which countries first introduced the first current account and which the first overdraft? Holland, Italy, Scotland, Norway What type of account has been introduced for poor families in the UK? Basic account, help account, postage account Gold Current account > Holland Overdraft > Scotland

Money has three main purposes, as follows. It is a form of payment or medium of exchange. It is a unit of account, allowing us to keep track of how much things are worth. It is a store of value: it can be held, and then reliably used to pay for goods and services when we need them. The main purpose of money is to transfer value from one person to another. 3.4 The features of money Coins and notes need to have certain features to function well as money. They must be: 􀀀 easily recognised by everyone; 􀀀 easy to carry around; 􀀀 not easily available; 􀀀 available in different amounts; 􀀀 consistent in what they are worth; and 􀀀 long-lasting/hard-wearing.

British banknotes have a range of anti-counterfeiting measures embedded into them, to make forgeries more difficult. These security features include: 􀀀 raised print; 􀀀 watermarks; 􀀀 holograms; 􀀀 fluorescent ink; and 􀀀 a combination of traditional and computer-based printing methods. Money can be transferred from one account to another to make payments to other people or to companies. This can be done by: 􀀀 direct debit, in which case the company takes whatever is owed at the time of invoicing; 􀀀 standing order, in which case you set up a regular payment of a fixed amount; or 􀀀 electronic transfer, in which case you pay money directly from your bank account as necessary.

Money has three main purposes, as follows. It is a form of payment or medium of exchange. It is a unit of account, allowing us to keep track of how much things are worth. It is a store of value: it can be held, and then reliably used to pay for goods and services when we need them. Coins and notes need to have certain features to function well as money. They must be: easily recognised by everyone; easy to carry around; not easily available; available in different amounts; consistent in what they are worth; and long-lasting/hard-wearing. British banknotes have a range of anti-counterfeiting measures embedded into them, to make forgeries more difficult. These security features include: raised print; watermarks; holograms; fluorescent ink; and a combination of traditional and computer-based printing methods.

In order for money to work properly, it has to have a number of distinctive features that make it possible and effective to use. These Features are portability, durability holding value. Extra Questions What is the difference between a standing order and a direct debit? How does the Bank of England stop counterfeiting? What are the features of money?

Key terms Barter Cashless society Counterfeiting Credit Credit card Debit Debit card Denomination Direct debit Income Investment Mint Money Pension Salary Standing order Transfer Wage

What is Money? How did people originally pay for goods before money? Barter, credit, negotiations Money is not only cash but anything that is accepted as payment? True or false What is a factory called that produces money? Press, mint, bank What are problems with bartering? People need to want what you want, items need to be the same value or both of these The word money is named after a goddess from which civilization? Egyptian, Greek, Roman (Juno Moneta) When was the first penny issued in England? 785 AD, 1120 AD 1350 AD The first pound note was printed on one side and could be exchanged for one pound of silver at the Bank of England and was introduced in 1725, although the first bank note was issued in 1694. True or False Our new currency introduced in 1971 is called decimalisation as it is based on units of? 2 5 10 The first banks were set up on benches. Bakki comes from which language? Greek, Norse, Italian Which 2 of the following are not British bank notes? £1 £5 £10 £20 £50 £100 11. All British bank notes say “I promise to pay the bearer on demand the sum of ..” Who males this promise? The Chancellor of the Exchequer, Governor of the Bank of England, Prime Minister 12. How is most money held in England? Cash or electronic balances on screen 13. We are moving to cashless society. Does spending money this way result in us spending more or less than when we use cash? 14. What is the new online currency known as? Bitcoin, e-coin, i-coin, smartcoin