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Topic 1 finance - - Coggle Diagram
Topic 1 finance -
An important stage in the development of money, then, was changing from an
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Most purchases are now made using coins and banknotes or by transferring
electronic balances between bank accounts
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are confident that others will, in turn, accept money from them as payment in later
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We have seen that people use money to make payments, save, borrow and record
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The barter system of exchanging goods or services has many limitations. It relies on
a ‘double coincidence of wants
Before money was created, people used a system of barter to trade goods or services
The limitations of barter led people to create systems where the local community used an item they all valued as a means of payment. such as animals or jewellery
Some items are not durable,Some items cannot be divided into small amounts,not easily portable
Another problem with using an item that has value in its own right is that the value
of that item itself can vary
money should be acceptable,durable,recognisable,portable,stable
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A key consideration for savers is that inflation can reduce the purchasing power of
the money saved over time.
A key consideration for savers is that inflation can reduce the purchasing power of
the money saved over time.
The same goods can cost different prices in different countries because of factors
such as the cost of living, wage rates and taxation
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CHAPS (Clearing House Automated Payment System) is a same-day automated
payment system used for very high value payments.
Mobile banking enables account holders to give payment instructions on their mobile
phone using the internet.