Functions of money

What is the purpose of money?

• To provide insurance against loss or illness

• To store value over time

• To measure the value of goods and services

• To buy goods and services

Why is money fit for purpose?

• Because it can provide insurance against loss or illness.

• Because it can maintain its value over time.

• Because it can be used to fund purchases.

• Because it can be used in transactions.

Which function of money refers to its ability to provide a common measure of value for goods?

• Interest rates

• Unit of account

• Medium of exchange

• Store of value

What is the drawback of the bartering system?

• Culture and religious beliefs

• Interest rates

• Coincidence of wants

• Life stages

What are some factors that influence the role of money?

• Different payment methods

• Personal attitudes towards risk

• Life stages

• Interest rates

What is a common principle of financial planning?

• Investment products

• Communicating with banks

• Different types of bank accounts

• Avoid getting into debt

What is the method of payment that involves a fixed amount of money being paid regularly to a person or organization?

• Mobile banking

• Store card

• Charge card

• Standing order

Which type of bank account provides the user with a range of additional benefits such as holiday insurance and car breakdown cover?

• Standard bank account

• Packaged premium account

• Basic account

• Student account

What are some examples of investment products?

• Individual Savings Accounts (ISAs)

• Bonds and gilts

• Shares

• All of the above

Which body is responsible for consumer protection in the financial services industry?

• FCA

• FOS

• FSCS

• OFT