Money

Question 1

Drawer

Answer 1

Person who writes the cheque

Question 2

Drawee

Answer 2

The bank

Question 3

Payee

Answer 3

The person who recieves the cheque

Question 4

Cheque

Answer 4

A written instruction to a bank to pay a dum of money from a bank account to the named person

Question 5

EFTPOS

Answer 5

Electronic funds transfer at point of sale

Question 6

ATM

Answer 6

Automated teller machine

Question 7

Credit transfer

Answer 7

• This allows you to transfer money from your account to some one else’s
• Can be done either at the bank or online

Question 8

Legal tender

Answer 8

• Form of money that creditors are legally obliged to accept
• Notes and coins
• NOT cheques/plastic cards

Question 9

Paypath

Answer 9

-Used by employers to page wages directly into employees bank accounts electronically

Question 10

Functions of money

Answer 10

1. Means of exchange
2. Measurement of value
3. Store of wealth
4. Means of slow repayment

Question 11

Impulse buying

Answer 11

• Unplanned buying

- Buying something in the Spur of the moment

Question 12

False economies

Answer 12

-something that costs you more in the long run, but at first appears To save you money

Question 13

Collateral

Answer 13

• security
• sthing of value used as security against a loan
• bank can sell this if the loan is not repaid

Question 14

Simple interest

Answer 14

Fixed amount paid each year

Question 15

Compound interest

Answer 15

• fixed percentage each heat calculated on the new sun each year
• Compund Annual Rate/ CAR

Question 16

DIRT

Answer 16

Deposit Interets Retention Tax

-percentage of interest removed