Transcript Chapter 11

Money and Banking
Barter
•
Exchange of goods and services for
other goods and services.
Eg. Bread for a haircut
What is Money?
• Anything which is accepted in
exchange for goods & services.
Qualities of Money
1. Scarce in supply – be in short supply
2. Non-perishable/durable – last a long
time
3. Portable – easy to carry
4. Divisible – can be broken into small
parts
Forms of Money
Currency/Legal Tender:
•
Notes and coins
Bank current accounts:
•
Put money into bank account and make
payments by cheque, laser, CT.
Plastic money:
•
Credit cards, charge cards, store cards,
laser and ATM cards.
Plastic Money/Cards
• Credit cards: Access, Visa,
MasterCard
• Charge Cards: American Express
• Store Cards: Esso, Statoil
• ATM
• Debit (Lazer) Card
• Smart Card
Credit Card
Buy now pay later.
Receives a monthly statement.
Pay in part or full.
Interest charged on balance.
Charge Card
 Amount due must
be paid as soon as
statement is
received.
 Annual membership
fee.
 American Express.
Store Cards
Given by department stores and oil
companies.
Customers are given a credit limit.
Esso/Shell, Brown Thomas.
ATM (Automated Teller Machine)
 Allows customers withdraw money,
pay bills, order cheque books,
change pin, receive statements,
mobile top up
 Access 24 hours
 Cheaper than paper transactions
why??
Debit/Lazer Card
Used by current account holders to
pay for goods and services
Laser card is swiped through terminal
at cash desk.
 Money is withdrawn from a/c
immediately.
Smart Card
 Combines
 ATM
 Laser
 Cheque guarantee
 Cirrus/Link (use
ATM’s abroad)
Irish Financial
Agencies
1.
2.
3.
4.
Banks
Building Societies
An Post
Credit Unions
Irish Financial Agencies
1. Banks
• Allied Irish Bank (AIB)
• Bank of Ireland (BOI)
• Ulster Bank
• Permanent TSB
• National Irish Bank (NIB)
2. Building Societies
•
Some of the building societies which
operate in Ireland are:
•
•
Educational Building Society (EBS)
Irish Nationwide Building Society
3. An Post
•
They have branches all over Ireland
in the form of post offices
4. Credit Unions
•
•
Owned and run by their members
Over 500 individual credit unions in
Ireland