EMS Grade 7 Term 1 Summary
Unit 1 Traditional societies and bartering
barter – trade that takes place without money; goods and services
are exchanged for one another
subsistence economy – a way of living where people produce
everything they need themselves
specialise – to focus on one thing and become really good at it
surplus – more of something than is needed
market – a place where people come together to buy and sell
goods
• Problems with bartering
Bartering is inefficient because, before trade can happen, each person
must want what the other person has, and must be willing to trade for it.
• This makes trading complicated and time consuming.
• As a result of this problem, money was invented to make trade easier.
• Barter is often regarded as an old-fashioned means of trading.
• Today, bartering is seldom used because money makes trade much
more efficient.
• For instance, in an economy that has money, an apple farmer who
needs shoes simply must find a shoe shop to buy shoes.
Unit 2 Money and electronic banking
money − any object (such as notes or coins) that can be
exchanged for goods or services
indirect trade – trade that occurs when money is used to pay for
goods or services
The development of money
Shells, tobacco, and furs, have been used as money in the past.
Cattle were often used to trade in the past and continue to be
used, not only in rituals and
ceremonies, but also as a form of money.
,The practice of measuring an individual’s wealth by the amount of cattle
they have is common throughout Africa.
Precious metals, such as gold and silver, were also used as money in
many ancient societies and civilisations.
promissory note − a piece of paper on which one person writes apromise
to pay the other person a certain sum of money at some time in the
future.
Coins : The first money issued in South Africa was called the rix
dollar.
No one knows exactly when or where the first coins were made.
There is evidence that coins were being used in ancient Greece as early
as 650 B.C.
Since then coins have been the most commonly used form of money
Paper money
The first forms of paper money were used in China during the 7th
century.
Later, paper money was introduced in the Mongol Empire and
throughout
Europe and America. Since then, paper money has been extensively
used in all countries.
, Electronic banking
Many people buy goods on the internet and pay for them electronically
without any notes or coins being exchanged. This kind of ‘electronic
money’ or ‘digital currency’ will be the money of the future.
Today people can use their computers, cell phones and iPads or tablets
to do their banking.
Money can be transferred electronically, and people can be paid
electronically without going into a bank or standing in a queue waiting to
be served. This has made it much easier for people to keep control of
their money and conduct business.
Advantages and disadvantages of electronic banking
• Electronic banking saves time since you do not need to go to a bank or
stand in long queues in order to carry out transactions.
• Electronic banking is convenient since it allows you to carry out your
banking at any time and from anywhere in the world.
• Electronic banking is efficient since transactions are processed much
more quickly through the use of computers.
Unit 3 The role of money
medium of exchange – an item that is used to make trade easier,
for example, notes and coins;
money is a medium of exchange durable – lasts for a long time
and is not easily broken or used up.
Characteristics of money
• The item used as money should be relatively scarce. Items that can be
easily found or copied are not a good form of money.
• The item should be durable. Items that break or fall apart and lose their
form should not be used as money.
• The item should be portable. Items that cannot be easily carried around
or transported are not a good form of money.
Unit 1 Traditional societies and bartering
barter – trade that takes place without money; goods and services
are exchanged for one another
subsistence economy – a way of living where people produce
everything they need themselves
specialise – to focus on one thing and become really good at it
surplus – more of something than is needed
market – a place where people come together to buy and sell
goods
• Problems with bartering
Bartering is inefficient because, before trade can happen, each person
must want what the other person has, and must be willing to trade for it.
• This makes trading complicated and time consuming.
• As a result of this problem, money was invented to make trade easier.
• Barter is often regarded as an old-fashioned means of trading.
• Today, bartering is seldom used because money makes trade much
more efficient.
• For instance, in an economy that has money, an apple farmer who
needs shoes simply must find a shoe shop to buy shoes.
Unit 2 Money and electronic banking
money − any object (such as notes or coins) that can be
exchanged for goods or services
indirect trade – trade that occurs when money is used to pay for
goods or services
The development of money
Shells, tobacco, and furs, have been used as money in the past.
Cattle were often used to trade in the past and continue to be
used, not only in rituals and
ceremonies, but also as a form of money.
,The practice of measuring an individual’s wealth by the amount of cattle
they have is common throughout Africa.
Precious metals, such as gold and silver, were also used as money in
many ancient societies and civilisations.
promissory note − a piece of paper on which one person writes apromise
to pay the other person a certain sum of money at some time in the
future.
Coins : The first money issued in South Africa was called the rix
dollar.
No one knows exactly when or where the first coins were made.
There is evidence that coins were being used in ancient Greece as early
as 650 B.C.
Since then coins have been the most commonly used form of money
Paper money
The first forms of paper money were used in China during the 7th
century.
Later, paper money was introduced in the Mongol Empire and
throughout
Europe and America. Since then, paper money has been extensively
used in all countries.
, Electronic banking
Many people buy goods on the internet and pay for them electronically
without any notes or coins being exchanged. This kind of ‘electronic
money’ or ‘digital currency’ will be the money of the future.
Today people can use their computers, cell phones and iPads or tablets
to do their banking.
Money can be transferred electronically, and people can be paid
electronically without going into a bank or standing in a queue waiting to
be served. This has made it much easier for people to keep control of
their money and conduct business.
Advantages and disadvantages of electronic banking
• Electronic banking saves time since you do not need to go to a bank or
stand in long queues in order to carry out transactions.
• Electronic banking is convenient since it allows you to carry out your
banking at any time and from anywhere in the world.
• Electronic banking is efficient since transactions are processed much
more quickly through the use of computers.
Unit 3 The role of money
medium of exchange – an item that is used to make trade easier,
for example, notes and coins;
money is a medium of exchange durable – lasts for a long time
and is not easily broken or used up.
Characteristics of money
• The item used as money should be relatively scarce. Items that can be
easily found or copied are not a good form of money.
• The item should be durable. Items that break or fall apart and lose their
form should not be used as money.
• The item should be portable. Items that cannot be easily carried around
or transported are not a good form of money.
