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Managing Finances

QuestionAnswer
Money an object that is portable, divisible, durable and stable and acts as the medium of exchange in a transaction
Value of Money principle that invested money will grow over time by earning interest
Characteristics of Money Portable, Divisible, Durable, Stable
Portable can be carried everywhere
Divisible can be divided into smaller amounts
Durable long-lasting and won't lose its value in a short-period of time
Stable can be used all the time and there won't be a currency change
Functions of Money Medium of Exchange, Store of Value, Unit of Account
Medium of Exchange used in transactions of goods and services
Store in Value if you keep money, the value would increase
Unit of Account money is countable
Currency government issued paper money and coins
Money and Technology ATM, E-cash, Credit Card, Debit Card, Smart Card
Commercial Bank financial institution that provides transactional and savings accounts as well as accepting deposits
World Bank provides financial services for developing countries to help them reduce poverty
Stockholder / Shareholder people who own a portion of ownership of a company or business
Stock Exchange a place where the buying and selling of stock of a business takes place
Finance science of Funds Management
Finance Sources Internal Resources Ownership Capital Non-Ownership Capital Venture Capital Long-term Capital Medium-term Capital Short-term Capital
Financial Planning process of identifying one's current financial condition, creating goals and making requirements to meet those goals
Future Goals Immediate, Intermediate, Long-term
Created by: narrthine
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