What's covered
Key facts
Money sent between bank accounts electronically is called a bank transfer.
Travellers usually swap pounds for foreign cash at a bureau de change.
Coins and paper notes used for everyday payments are called cash.
A government payment to support people unable to work is called a benefit.
A problem with bartering is that both people must want what the other offers (the "double coincidence of wants").
A disadvantage of cash for large purchases is that it can be lost or stolen easily.
The euro is used as legal tender in France, Germany and other Eurozone members.
Cryptocurrency is digital money held on a computer system.
The Bank of England issues new banknotes for England and Wales.
High inflation reduces money's effectiveness as a store of value.
Sample questions
A taste of the 50 questions in this topic — answers marked. Sign up to practise the full set with spaced repetition.
Which is a digital payment method?
- •Counting out loose change
- •Handing over four £1 coins
- •Paying with a £5 note
- ✓Tapping a contactless debit card
What is an 'exchange rate'?
- •The annual tax on currency transactions
- •The fee a shop charges for change
- •The number of coins inside one note
- ✓The price of one currency in terms of another
Which is an example of digital money used today?
- •A bag of mixed gold coins
- ✓A balance held in a bank account
- •A box of paper £20 notes
- •A jar of saved coppers
Which UK institution issues new banknotes for England and Wales?
- ✓Bank of England
- •Financial Conduct Authority
- •HM Treasury
- •Royal Mint
Which is one main function of money?
- •A guarantee of personal happiness
- ✓A medium of exchange between people
- •A substitute for any human food
- •A way to control the local weather
What is one advantage of using contactless card payments?
- •Always free of any small charge
- ✓Fast checkouts with no PIN needed
- •Mandatory cash-back on every purchase
- •No record of the purchase ever kept
Try it for four weeks. Free.
One school. Unlimited classes. No card limit. No teacher limit. If your students aren't practising daily by the end of the trial, you owe us nothing.