University of Strathclyde LIBF Unit 1 topics 1, 2, 3, 4, 5 & 6 ||
Already Graded A+.
Acceptable correct answers One of the key features of money - to be widely accepted.
Barter correct answers To exchange goods and services for other goods and services without
using money.
Current account correct answers Bank or building society accounts where people can store their
money in the form of electronic balances and withdraw it to make payments.
Denomination correct answers A group of coins or notes that share the same face value.
Divisible correct answers A key feature of money - to be easily divided into amounts of different
value.
Double coincidence of wants correct answers A situation in which two people have goods or
services to trade and each wants what the other person can provide.
Durable correct answers 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). correct answers
Fiduciary value correct answers Value based on trust in the banking system.
Homogeneous correct answers A key feature of money - to look and feel the same as other coins
and notes of the same denomination.
, Inflation correct answers A rise in prices, which means that the purchasing power of money falls.
Intrinsic value correct answers 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 correct answers Coins or banknotes that must be accepted if offered in payment of a
debt.
Means of exchange correct answers A function of money - to allow people to make payments.
Money correct answers Anything widely accepted as a means of making payments.
Payment mechanism correct answers A means of transferring money from one account to another
eg debit card, cheque.
Portable correct answers A key feature of money - to be small and light enough to carry around
easily.
Purchasing power correct answers The quantity of goods or services that money can buy.
Rate of exchange correct answers 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 correct answers A key feature of money - to be easily identified as genuine money.
Representational value correct answers 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.
Already Graded A+.
Acceptable correct answers One of the key features of money - to be widely accepted.
Barter correct answers To exchange goods and services for other goods and services without
using money.
Current account correct answers Bank or building society accounts where people can store their
money in the form of electronic balances and withdraw it to make payments.
Denomination correct answers A group of coins or notes that share the same face value.
Divisible correct answers A key feature of money - to be easily divided into amounts of different
value.
Double coincidence of wants correct answers A situation in which two people have goods or
services to trade and each wants what the other person can provide.
Durable correct answers 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). correct answers
Fiduciary value correct answers Value based on trust in the banking system.
Homogeneous correct answers A key feature of money - to look and feel the same as other coins
and notes of the same denomination.
, Inflation correct answers A rise in prices, which means that the purchasing power of money falls.
Intrinsic value correct answers 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 correct answers Coins or banknotes that must be accepted if offered in payment of a
debt.
Means of exchange correct answers A function of money - to allow people to make payments.
Money correct answers Anything widely accepted as a means of making payments.
Payment mechanism correct answers A means of transferring money from one account to another
eg debit card, cheque.
Portable correct answers A key feature of money - to be small and light enough to carry around
easily.
Purchasing power correct answers The quantity of goods or services that money can buy.
Rate of exchange correct answers 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 correct answers A key feature of money - to be easily identified as genuine money.
Representational value correct answers 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.
