MGTA02H3 Chapter 10: Chapter 10- Understanding Money and Banking
30 Sep 2011
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1- define money and identify the different forms it takes in the nation"s money supply. Money- any object generally accepted by people as payment for goods and services: portability- lightweight and easy to handle, divisibility- match units of money with the value of all goods, durability- shouldn"t lose its value. The functions of money: money serves 3 functions: Medium of exchange- use money as a way of buying and selling. Store of value- money can be used to future purchases and o things o. Stores value o and accounted for in terms of money. Some cards charge annual fees/interest on unpaid balances to. Merchants who accept credit cards pay fees to card issuers. 2- describe the different kinds of financial institutions that make up the canadian financial system and explain the services they offer. The canadian finanacial system: many forms of money depend on the existence of financial institutions to provide a broad spectrum of services to individuals and businesses.
