Cashless society study guide

Check

• A written and signed document that contains an unconditional order from the drawer (person who wrote it) that directs a bank to pay a specific sum of money to a payee.

• Consumers purchase these cards for a specific amount of money. The amount paid is stored in the card´s memory, and the card can be used to pay for goods or services at any store. Can be reloaded

EFT

• Any transfers of funds, other than a transaction originated by check or other paper instrument initiated through an electronic terminal, telephone, or computer, to authorize a financial institution to debt or credit an account

• Transactions completed with no physical connection between the payment device and the Point of Sale (POS) device or store check

Contactless Payment

• Transactions completed with no physical connection between the payment device and the Point of Sale (POS) device or store check

• Exchanging goods or services with an individual to make it possible to satisfy needs and wants without the exchange in money

Barter

• Exchanging goods or services with an individual to make it possible to satisfy needs and wants without the exchange in money

• Transactions completed with no physical connection between the payment device and the Point of Sale (POS) device or clerk

Store Crash cards/gift cards

• Some retail chain stores sell cash cards which can be used to pay for goods and services at any store

• Exchanging goods or services with an individual to make it possible to satisfy needs and wants without the exchange in money

• Consumers purchase these cards for a specific amount of money. The amount paid is stored in the card´s memory, and the card can be used to pay for goods or services at any store. Can be reloaded

Debt Card

• Linked to a credit line used to pay goods and services. Helps to Establish Credit

• Linked to a checking account. Used to pay goods and services at retailers and online

Credit Card

• Linked to a credit line used to pay goods and services. Helps to Establish Credit

• Linked to a checking account. Used to pay goods and services at retailers and online.

What is Fiat Money?

• Currency backed by gold
• Digital currency
• Barter system
• a currency established as money by government regulation or law.

Which government agency makes PAPER money?

• The Bureau of Engraving and Printing (BEP)
• The Federal Bureau of Investigation (FBI)
• The Environmental Protection Agency (EPA)
• The Department of Transportation (DOT)

Which government agency makes COINS?

• Internal Revenue Service
• Department of Treasury
• Federal Reserve
• United States Mint