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TYPES AND CHARACTERISTICS OF MONEY (Forms of money (Debt: Borrowed money…
TYPES AND CHARACTERISTICS
OF MONEY
Types of Money
Currency: The dollar, the mark and the yen.
Checks: A checking account is money deposited in a bank that a person can withdraw at any time by writing a check
Money and Near Moneys: Money in use today
Credit Cards and Debit Cards: The use of your credit card is really a loan to you by the issuer of the card, whether it is a bank. The debit card automatically withdraws money from a checkable account
Characteristics of Money
Divisible: Money must be easily divided into small parts.
Portable: Money can be carried around easily, people can easily carry large sums of paper money
Stable in value: Its value cannot change rapidly or its usefulness as a store of value will decrease
Durable: Money must be able to withstand the wear and tear of being passed from person to person
Scarce: That is what gives it value
Accepted: It must be accepted as a medium of exchange in payment for debts
Forms of money
Pension: Money paid by the government or a company to a retired person
Fund: where the money that will ultimately be used to pay pensions is kept
Deposits: Money placed in banks and other savings institutions
Capital: The money needed to start a company
Salary: The money paid for a month's (professional) work
Fees: The money paid to lawyers, architects, private schools, etc
Wages: The money earned for a week's manual work
Instalments: Regular part payments of debts
Rebate: Part of a payment that is officially given back (for example, from taxes)
Income: All the money received by a person or a company
Budget: Estimated expenditure and income is written
Debt: Borrowed money that has to be paid back
Stake: A person's money in a business is known as his or her
Subsidy: Money given to producers to allow them to sell cheaply
Cash: Money in notes and coins
Aid: Money given to developing countries by richer ones
Loan: Money borrowed from a bank
