Question | Answer |
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 |